Correlation Between Maat Pharma and Kumulus Vape

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

By analyzing existing cross correlation between Maat Pharma SA and Kumulus Vape SA, you can compare the effects of market volatilities on Maat Pharma and Kumulus Vape 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 Maat Pharma with a short position of Kumulus Vape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maat Pharma and Kumulus Vape.

Diversification Opportunities for Maat Pharma and Kumulus Vape

0.95

Correlation Coefficient

Maat Pharma  Kumulus Vape

Almost no diversification

The 3 months correlation between Maat and Kumulus is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Maat Pharma SA and Kumulus Vape SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumulus Vape SA and Maat Pharma 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 Maat Pharma SA are associated (or correlated) with Kumulus Vape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumulus Vape SA has no effect on the direction of Maat Pharma i.e., Maat Pharma and Kumulus Vape go up and down completely randomly.

Pair Corralation between Maat Pharma and Kumulus Vape

Assuming the 90 days trading horizon Maat Pharma SA is expected to under-perform the Kumulus Vape. In addition to that, Maat Pharma is 2.42 times more volatile than Kumulus Vape SA. It trades about -0.11 of its total potential returns per unit of risk. Kumulus Vape SA is currently generating about -0.12 per unit of volatility. If you would invest  514.00  in Kumulus Vape SA on December 31, 2024 and sell it today you would lose (56.00) from holding Kumulus Vape SA or give up 10.89% of portfolio value over 90 days.

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

Maat Pharma SA  vs.  Kumulus Vape SA

Maat Pharma SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maat Pharma SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Kumulus Vape SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kumulus Vape SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Maat Pharma and Kumulus Vape

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

The idea behind Maat Pharma SA and Kumulus Vape SA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.