Correlation Between Interactive Motorsports and KKR Acquisition

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

By analyzing existing cross correlation between Interactive Motorsports And and KKR Acquisition Holdings, you can compare the effects of market volatilities on Interactive Motorsports and KKR Acquisition 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 Interactive Motorsports with a short position of KKR Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Motorsports and KKR Acquisition.

Diversification Opportunities for Interactive Motorsports and KKR Acquisition

0.0

Correlation Coefficient

Interactive Motorsports  KKR Acquisition

Pay attention - limited upside

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

Pair Corralation between Interactive Motorsports and KKR Acquisition

If you would invest  1,001  in KKR Acquisition Holdings on January 26, 2024 and sell it today you would earn a total of  0.00  from holding KKR Acquisition Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Interactive Motorsports And  vs.  KKR Acquisition Holdings

Interactive Motorsports

Risk-Adjusted Performance

0 of 100

Very Weak

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

KKR Acquisition Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KKR Acquisition Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, KKR Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Interactive Motorsports and KKR Acquisition

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

The idea behind Interactive Motorsports And and KKR Acquisition Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.