Correlation Between Where Food and Kodiak Gas

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

By analyzing existing cross correlation between Where Food Comes and Kodiak Gas Services,, you can compare the effects of market volatilities on Where Food and Kodiak Gas 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 Where Food with a short position of Kodiak Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and Kodiak Gas.

Diversification Opportunities for Where Food and Kodiak Gas

0.82

Correlation Coefficient

Where Food  Kodiak Gas

Very poor diversification

The 3 months correlation between Where and Kodiak is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and Kodiak Gas Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Gas Services, and Where Food 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 Where Food Comes are associated (or correlated) with Kodiak Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Gas Services, has no effect on the direction of Where Food i.e., Where Food and Kodiak Gas go up and down completely randomly.

Pair Corralation between Where Food and Kodiak Gas

Given the investment horizon of 90 days Where Food Comes is expected to generate 1.07 times more return on investment than Kodiak Gas. However, Where Food is 1.07 times more volatile than Kodiak Gas Services,. It trades about 0.19 of its potential returns per unit of risk. Kodiak Gas Services, is currently generating about -0.05 per unit of risk. If you would invest  1,134  in Where Food Comes on September 22, 2024 and sell it today you would earn a total of  111.00  from holding Where Food Comes or generate 9.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Where Food Comes  vs.  Kodiak Gas Services,

Where Food Comes

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental indicators, Where Food reported solid returns over the last few months and may actually be approaching a breakup point.

Kodiak Gas Services,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kodiak Gas Services, are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Kodiak Gas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Where Food and Kodiak Gas

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

The idea behind Where Food Comes and Kodiak Gas Services, 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.