Correlation Between LanzaTech Global and Kforce

Can any of the company-specific risk be diversified away by investing in both LanzaTech Global and Kforce 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 LanzaTech Global and Kforce into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LanzaTech Global and Kforce Inc, you can compare the effects of market volatilities on LanzaTech Global and Kforce 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 LanzaTech Global with a short position of Kforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of LanzaTech Global and Kforce.

Diversification Opportunities for LanzaTech Global and Kforce

0.24

Correlation Coefficient

LanzaTech Global  Kforce

Modest diversification

The 3 months correlation between LanzaTech and Kforce is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding LanzaTech Global and Kforce Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kforce Inc and LanzaTech Global 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 LanzaTech Global are associated (or correlated) with Kforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kforce Inc has no effect on the direction of LanzaTech Global i.e., LanzaTech Global and Kforce go up and down completely randomly.

Pair Corralation between LanzaTech Global and Kforce

Given the investment horizon of 90 days LanzaTech Global is expected to under-perform the Kforce. In addition to that, LanzaTech Global is 3.71 times more volatile than Kforce Inc. It trades about -0.03 of its total potential returns per unit of risk. Kforce Inc is currently generating about -0.01 per unit of volatility. If you would invest  5,959  in Kforce Inc on November 19, 2024 and sell it today you would lose (965.00) from holding Kforce Inc or give up 16.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

LanzaTech Global  vs.  Kforce Inc

LanzaTech Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days LanzaTech Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, LanzaTech Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Kforce Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kforce Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with LanzaTech Global and Kforce

The main advantage of trading using opposite LanzaTech Global and Kforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LanzaTech Global position performs unexpectedly, Kforce 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 Kforce will offset losses from the drop in Kforce's long position.

The idea behind LanzaTech Global and Kforce Inc 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 Transaction History module to view history of all your transactions and understand their impact on performance.