Correlation Between Kiaro Holdings and 111

Can any of the company-specific risk be diversified away by investing in both Kiaro Holdings and 111 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 Kiaro Holdings and 111 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kiaro Holdings Corp and 111 Inc, you can compare the effects of market volatilities on Kiaro Holdings and 111 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 Kiaro Holdings with a short position of 111. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiaro Holdings and 111.

Diversification Opportunities for Kiaro Holdings and 111

0.0

Correlation Coefficient

Kiaro Holdings  111

Pay attention - limited upside

The 3 months correlation between Kiaro and 111 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kiaro Holdings Corp and 111 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 111 Inc and Kiaro Holdings 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 Kiaro Holdings Corp are associated (or correlated) with 111. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 111 Inc has no effect on the direction of Kiaro Holdings i.e., Kiaro Holdings and 111 go up and down completely randomly.

Pair Corralation between Kiaro Holdings and 111

If you would invest  56.00  in 111 Inc on September 15, 2024 and sell it today you would earn a total of  27.00  from holding 111 Inc or generate 48.21% return on investment over 90 days.

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

Kiaro Holdings Corp  vs.  111 Inc

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

111 Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 111 Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, 111 demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kiaro Holdings and 111

The main advantage of trading using opposite Kiaro Holdings and 111 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiaro Holdings position performs unexpectedly, 111 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 111 will offset losses from the drop in 111's long position.

The idea behind Kiaro Holdings Corp and 111 Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.