Correlation Between Eco Depot and Kinaxis

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

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

Diversification Opportunities for Eco Depot and Kinaxis

-0.24

Correlation Coefficient

Eco Depot  Kinaxis

Very good diversification

The 3 months correlation between Eco and Kinaxis is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eco Depot and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis and Eco Depot 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 Eco Depot are associated (or correlated) with Kinaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinaxis has no effect on the direction of Eco Depot i.e., Eco Depot and Kinaxis go up and down completely randomly.

Pair Corralation between Eco Depot and Kinaxis

Given the investment horizon of 90 days Eco Depot is expected to under-perform the Kinaxis. In addition to that, Eco Depot is 3.8 times more volatile than Kinaxis. It trades about -0.02 of its total potential returns per unit of risk. Kinaxis is currently generating about 0.05 per unit of volatility. If you would invest  13,750  in Kinaxis on May 12, 2025 and sell it today you would earn a total of  881.00  from holding Kinaxis or generate 6.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Eco Depot  vs.  Kinaxis

Eco Depot

Risk-Adjusted Performance

Weakest

Over the last 90 days Eco Depot has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Kinaxis

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Kinaxis are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Kinaxis may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Eco Depot and Kinaxis

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

The idea behind Eco Depot and Kinaxis 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.