Correlation Between KYN Capital and 12 Retech

Can any of the company-specific risk be diversified away by investing in both KYN Capital and 12 Retech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KYN Capital and 12 Retech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KYN Capital Group and 12 Retech Corp, you can compare the effects of market volatilities on KYN Capital and 12 Retech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KYN Capital with a short position of 12 Retech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYN Capital and 12 Retech.

Diversification Opportunities for KYN Capital and 12 Retech

0.0

Correlation Coefficient

KYN Capital  12 Retech

Pay attention - limited upside

The 3 months correlation between KYN and RETC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KYN Capital Group and 12 Retech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 12 Retech Corp and KYN Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KYN Capital Group are associated (or correlated) with 12 Retech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 12 Retech Corp has no effect on the direction of KYN Capital i.e., KYN Capital and 12 Retech go up and down completely randomly.

Pair Corralation between KYN Capital and 12 Retech

If you would invest  0.09  in KYN Capital Group on September 4, 2024 and sell it today you would lose (0.02) from holding KYN Capital Group or give up 22.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

KYN Capital Group  vs.  12 Retech Corp

KYN Capital Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KYN Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, KYN Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

12 Retech Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 12 Retech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, 12 Retech is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with KYN Capital and 12 Retech

The main advantage of trading using opposite KYN Capital and 12 Retech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYN Capital position performs unexpectedly, 12 Retech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 12 Retech will offset losses from the drop in 12 Retech's long position.

The idea behind KYN Capital Group and 12 Retech Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.