Correlation Between Martin Currie and Meet Kevin

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

By analyzing existing cross correlation between Martin Currie Sustainable and The Meet Kevin, you can compare the effects of market volatilities on Martin Currie and Meet Kevin 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 Martin Currie with a short position of Meet Kevin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Meet Kevin.

Diversification Opportunities for Martin Currie and Meet Kevin

-0.71

Correlation Coefficient

Martin Currie  Meet Kevin

Pay attention - limited upside

The 3 months correlation between Martin and Meet is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and The Meet Kevin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meet Kevin and Martin Currie 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 Martin Currie Sustainable are associated (or correlated) with Meet Kevin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meet Kevin has no effect on the direction of Martin Currie i.e., Martin Currie and Meet Kevin go up and down completely randomly.

Pair Corralation between Martin Currie and Meet Kevin

Given the investment horizon of 90 days Martin Currie is expected to generate 1.33 times less return on investment than Meet Kevin. In addition to that, Martin Currie is 1.04 times more volatile than The Meet Kevin. It trades about 0.02 of its total potential returns per unit of risk. The Meet Kevin is currently generating about 0.03 per unit of volatility. If you would invest  2,575  in The Meet Kevin on December 27, 2024 and sell it today you would earn a total of  35.00  from holding The Meet Kevin or generate 1.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	71.67%
Values	Daily Returns

Martin Currie Sustainable  vs.  The Meet Kevin

Martin Currie Sustainable

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Currie Sustainable are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Martin Currie is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Meet Kevin

Risk-Adjusted Performance

Weak

Over the last 90 days The Meet Kevin has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Meet Kevin is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Martin Currie and Meet Kevin

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

The idea behind Martin Currie Sustainable and The Meet Kevin 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.