Correlation Between Sekur Private and KwikClick

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

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

Diversification Opportunities for Sekur Private and KwikClick

-0.55

Correlation Coefficient

Sekur Private  KwikClick

Excellent diversification

The 3 months correlation between Sekur and KwikClick is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sekur Private Data and KwikClick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KwikClick and Sekur Private 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 Sekur Private Data are associated (or correlated) with KwikClick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KwikClick has no effect on the direction of Sekur Private i.e., Sekur Private and KwikClick go up and down completely randomly.

Pair Corralation between Sekur Private and KwikClick

Assuming the 90 days horizon Sekur Private is expected to generate 1.16 times less return on investment than KwikClick. But when comparing it to its historical volatility, Sekur Private Data is 1.4 times less risky than KwikClick. It trades about 0.1 of its potential returns per unit of risk. KwikClick is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  6.50  in KwikClick on December 30, 2024 and sell it today you would earn a total of  0.51  from holding KwikClick or generate 7.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.38%
Values	Daily Returns

Sekur Private Data  vs.  KwikClick

Sekur Private Data

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sekur Private Data are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sekur Private reported solid returns over the last few months and may actually be approaching a breakup point.

KwikClick

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KwikClick are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, KwikClick disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sekur Private and KwikClick

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

The idea behind Sekur Private Data and KwikClick 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.