Correlation Between Indo Global and Kiaro Holdings

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

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

Diversification Opportunities for Indo Global and Kiaro Holdings

0.0

Correlation Coefficient

Indo Global  Kiaro Holdings

Pay attention - limited upside

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

Pair Corralation between Indo Global and Kiaro Holdings

If you would invest  0.04  in Indo Global Exchange on August 31, 2024 and sell it today you would earn a total of  0.03  from holding Indo Global Exchange or generate 75.0% return on investment over 90 days.

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

Indo Global Exchange  vs.  Kiaro Holdings Corp

Indo Global Exchange

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Indo Global Exchange are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, Indo Global showed solid returns over the last few months and may actually be approaching a breakup point.

Kiaro Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kiaro Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Kiaro Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Indo Global and Kiaro Holdings

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

The idea behind Indo Global Exchange and Kiaro Holdings Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.