Correlation Between Kinaxis and EKAR
Can any of the company-specific risk be diversified away by investing in both Kinaxis and EKAR 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 Kinaxis and EKAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinaxis and EKAR, you can compare the effects of market volatilities on Kinaxis and EKAR 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 Kinaxis with a short position of EKAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinaxis and EKAR.
Diversification Opportunities for Kinaxis and EKAR
Average diversification
The 3 months correlation between Kinaxis and EKAR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kinaxis and EKAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EKAR and Kinaxis 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 Kinaxis are associated (or correlated) with EKAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EKAR has no effect on the direction of Kinaxis i.e., Kinaxis and EKAR go up and down completely randomly.
Pair Corralation between Kinaxis and EKAR
If you would invest 15,026 in Kinaxis on January 24, 2024 and sell it today you would earn a total of 66.00 from holding Kinaxis or generate 0.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Kinaxis vs. EKAR
Performance |
Timeline |
Kinaxis |
EKAR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinaxis and EKAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinaxis and EKAR
The main advantage of trading using opposite Kinaxis and EKAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinaxis position performs unexpectedly, EKAR 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 EKAR will offset losses from the drop in EKAR's long position.Kinaxis vs. Plurilock Security | Kinaxis vs. Kwesst Micro Systems | Kinaxis vs. Perimeter Medical Imaging | Kinaxis vs. Jericho Oil Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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