Correlation Between MultiMetaVerse Holdings and KIMCO

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

By analyzing existing cross correlation between MultiMetaVerse Holdings Limited and KIMCO RLTY P, you can compare the effects of market volatilities on MultiMetaVerse Holdings and KIMCO 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 MultiMetaVerse Holdings with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of MultiMetaVerse Holdings and KIMCO.

Diversification Opportunities for MultiMetaVerse Holdings and KIMCO

-0.51

Correlation Coefficient

MultiMetaVerse Holdings  KIMCO

Excellent diversification

The 3 months correlation between MultiMetaVerse and KIMCO is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MultiMetaVerse Holdings Limite and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P and MultiMetaVerse Holdings 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 MultiMetaVerse Holdings Limited are associated (or correlated) with KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of MultiMetaVerse Holdings i.e., MultiMetaVerse Holdings and KIMCO go up and down completely randomly.

Pair Corralation between MultiMetaVerse Holdings and KIMCO

Considering the 90-day investment horizon MultiMetaVerse Holdings Limited is expected to generate 12.74 times more return on investment than KIMCO. However, MultiMetaVerse Holdings is 12.74 times more volatile than KIMCO RLTY P. It trades about 0.16 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about -0.14 per unit of risk. If you would invest  54.00  in MultiMetaVerse Holdings Limited on September 25, 2024 and sell it today you would earn a total of  51.00  from holding MultiMetaVerse Holdings Limited or generate 94.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.19%
Values	Daily Returns

MultiMetaVerse Holdings Limite  vs.  KIMCO RLTY P

MultiMetaVerse Holdings

Risk-Adjusted Performance

12 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MultiMetaVerse Holdings Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady primary indicators, MultiMetaVerse Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

KIMCO RLTY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KIMCO RLTY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KIMCO RLTY P investors.

Pair Trading with MultiMetaVerse Holdings and KIMCO

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

The idea behind MultiMetaVerse Holdings Limited and KIMCO RLTY P 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.