Correlation Between KICK and Lisk

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

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

Diversification Opportunities for KICK and Lisk

0.0

Correlation Coefficient

KICK  Lisk

Pay attention - limited upside

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

Pair Corralation between KICK and Lisk

If you would invest  75.00  in Lisk on September 2, 2024 and sell it today you would earn a total of  56.00  from holding Lisk or generate 74.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.52%
Values	Daily Returns

KICK  vs.  Lisk

KICK

Risk-Adjusted Performance

0 of 100

Very Weak

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

Lisk

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lisk are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward-looking signals, Lisk exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KICK and Lisk

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

The idea behind KICK and Lisk 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.