Correlation Between NPXS and KICK

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

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

Diversification Opportunities for NPXS and KICK

0.0

Correlation Coefficient

NPXS  KICK

Pay attention - limited upside

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

Pair Corralation between NPXS and KICK

If you would invest  0.07  in KICK on September 2, 2024 and sell it today you would earn a total of  0.00  from holding KICK or generate 0.0% return on investment over 90 days.

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

NPXS  vs.  KICK

NPXS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NPXS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for NPXS shareholders.

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.

Pair Trading with NPXS and KICK

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

The idea behind NPXS and KICK 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.