Correlation Between Meet Kevin and QRAFT AI

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

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

Diversification Opportunities for Meet Kevin and QRAFT AI

0.02

Correlation Coefficient

Meet Kevin  QRAFT AI

Significant diversification

The 3 months correlation between Meet and QRAFT is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding The Meet Kevin and QRAFT AI Enhanced Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QRAFT AI Enhanced and Meet Kevin 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 The Meet Kevin are associated (or correlated) with QRAFT AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QRAFT AI Enhanced has no effect on the direction of Meet Kevin i.e., Meet Kevin and QRAFT AI go up and down completely randomly.

Pair Corralation between Meet Kevin and QRAFT AI

Allowing for the 90-day total investment horizon The Meet Kevin is expected to generate 0.57 times more return on investment than QRAFT AI. However, The Meet Kevin is 1.74 times less risky than QRAFT AI. It trades about 0.01 of its potential returns per unit of risk. QRAFT AI Enhanced Large is currently generating about -0.11 per unit of risk. If you would invest  2,596  in The Meet Kevin on December 18, 2024 and sell it today you would earn a total of  14.00  from holding The Meet Kevin or generate 0.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	83.05%
Values	Daily Returns

The Meet Kevin  vs.  QRAFT AI Enhanced Large

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.

QRAFT AI Enhanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days QRAFT AI Enhanced Large has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Meet Kevin and QRAFT AI

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

The idea behind The Meet Kevin and QRAFT AI Enhanced Large 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.