Correlation Between Tombador Iron and Kinatico

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

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

Diversification Opportunities for Tombador Iron and Kinatico

0.0

Correlation Coefficient

Tombador Iron  Kinatico

Pay attention - limited upside

The 3 months correlation between Tombador and Kinatico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tombador Iron and Kinatico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinatico and Tombador Iron 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 Tombador Iron are associated (or correlated) with Kinatico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinatico has no effect on the direction of Tombador Iron i.e., Tombador Iron and Kinatico go up and down completely randomly.

Pair Corralation between Tombador Iron and Kinatico

If you would invest  14.00  in Kinatico on December 2, 2024 and sell it today you would earn a total of  1.00  from holding Kinatico or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tombador Iron  vs.  Kinatico

Tombador Iron

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tombador Iron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tombador Iron is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Kinatico

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kinatico are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Kinatico may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Tombador Iron and Kinatico

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

The idea behind Tombador Iron and Kinatico 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.