Correlation Between Kidoz and Sun Pacific

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

By analyzing existing cross correlation between Kidoz Inc and Sun Pacific Holding, you can compare the effects of market volatilities on Kidoz and Sun Pacific 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 Kidoz with a short position of Sun Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidoz and Sun Pacific.

Diversification Opportunities for Kidoz and Sun Pacific

-0.05

Correlation Coefficient

Kidoz  Sun Pacific

Good diversification

The 3 months correlation between Kidoz and Sun is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kidoz Inc and Sun Pacific Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Pacific Holding and Kidoz 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 Kidoz Inc are associated (or correlated) with Sun Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Pacific Holding has no effect on the direction of Kidoz i.e., Kidoz and Sun Pacific go up and down completely randomly.

Pair Corralation between Kidoz and Sun Pacific

Assuming the 90 days horizon Kidoz Inc is expected to generate 4.48 times more return on investment than Sun Pacific. However, Kidoz is 4.48 times more volatile than Sun Pacific Holding. It trades about 0.14 of its potential returns per unit of risk. Sun Pacific Holding is currently generating about 0.09 per unit of risk. If you would invest  11.00  in Kidoz Inc on September 13, 2024 and sell it today you would lose (1.00) from holding Kidoz Inc or give up 9.09% of portfolio value over 90 days.

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

Kidoz Inc  vs.  Sun Pacific Holding

Kidoz Inc

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kidoz Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kidoz reported solid returns over the last few months and may actually be approaching a breakup point.

Sun Pacific Holding

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kidoz and Sun Pacific

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

The idea behind Kidoz Inc and Sun Pacific Holding 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.