Correlation Between Moovly Media and Kinaxis

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

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

Diversification Opportunities for Moovly Media and Kinaxis

-0.34

Correlation Coefficient

Moovly Media  Kinaxis

Very good diversification

The 3 months correlation between Moovly and Kinaxis is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Moovly Media and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis and Moovly Media 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 Moovly Media are associated (or correlated) with Kinaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinaxis has no effect on the direction of Moovly Media i.e., Moovly Media and Kinaxis go up and down completely randomly.

Pair Corralation between Moovly Media and Kinaxis

Assuming the 90 days horizon Moovly Media is expected to generate 78.92 times more return on investment than Kinaxis. However, Moovly Media is 78.92 times more volatile than Kinaxis. It trades about 0.15 of its potential returns per unit of risk. Kinaxis is currently generating about -0.1 per unit of risk. If you would invest  0.44  in Moovly Media on December 30, 2024 and sell it today you would lose (0.21) from holding Moovly Media or give up 47.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Moovly Media  vs.  Kinaxis

Moovly Media

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moovly Media are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Moovly Media reported solid returns over the last few months and may actually be approaching a breakup point.

Kinaxis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kinaxis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Moovly Media and Kinaxis

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

The idea behind Moovly Media and Kinaxis 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.