Correlation Between SaltX Technology and Goodbye Kansas

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

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

Diversification Opportunities for SaltX Technology and Goodbye Kansas

-0.02

Correlation Coefficient

SaltX Technology  Goodbye Kansas

Good diversification

The 3 months correlation between SaltX and Goodbye is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and SaltX Technology 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 SaltX Technology Holding are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of SaltX Technology i.e., SaltX Technology and Goodbye Kansas go up and down completely randomly.

Pair Corralation between SaltX Technology and Goodbye Kansas

Assuming the 90 days trading horizon SaltX Technology Holding is expected to under-perform the Goodbye Kansas. But the stock apears to be less risky and, when comparing its historical volatility, SaltX Technology Holding is 2.6 times less risky than Goodbye Kansas. The stock trades about -0.05 of its potential returns per unit of risk. The Goodbye Kansas Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  125.00  in Goodbye Kansas Group on February 7, 2024 and sell it today you would lose (3.00) from holding Goodbye Kansas Group or give up 2.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

SaltX Technology Holding  vs.  Goodbye Kansas Group

SaltX Technology Holding

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SaltX Technology Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, SaltX Technology sustained solid returns over the last few months and may actually be approaching a breakup point.

Goodbye Kansas Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goodbye Kansas Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SaltX Technology and Goodbye Kansas

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

The idea behind SaltX Technology Holding and Goodbye Kansas Group 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.