Correlation Between Coremax Corp and Kinik

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

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

Diversification Opportunities for Coremax Corp and Kinik

-0.43

Correlation Coefficient

Coremax Corp  Kinik

Very good diversification

The 3 months correlation between Coremax and Kinik is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Coremax Corp and Kinik Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinik and Coremax Corp 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 Coremax Corp are associated (or correlated) with Kinik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinik has no effect on the direction of Coremax Corp i.e., Coremax Corp and Kinik go up and down completely randomly.

Pair Corralation between Coremax Corp and Kinik

Assuming the 90 days trading horizon Coremax Corp is expected to generate 0.65 times more return on investment than Kinik. However, Coremax Corp is 1.55 times less risky than Kinik. It trades about 0.09 of its potential returns per unit of risk. Kinik Co is currently generating about -0.03 per unit of risk. If you would invest  5,790  in Coremax Corp on September 12, 2024 and sell it today you would earn a total of  510.00  from holding Coremax Corp or generate 8.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Coremax Corp  vs.  Kinik Co

Coremax Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coremax Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Coremax Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Kinik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kinik Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kinik is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Coremax Corp and Kinik

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

The idea behind Coremax Corp and Kinik Co 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 CEOs Directory module to screen CEOs from public companies around the world.