Correlation Between Eq Energy and Kid Castle

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

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

Diversification Opportunities for Eq Energy and Kid Castle

0.0

Correlation Coefficient

Eq Energy  Kid Castle

Pay attention - limited upside

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

Pair Corralation between Eq Energy and Kid Castle

If you would invest  0.12  in Eq Energy Drink on May 9, 2025 and sell it today you would lose (0.04) from holding Eq Energy Drink or give up 33.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Eq Energy Drink  vs.  Kid Castle Educational

Eq Energy Drink

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eq Energy Drink are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal essential indicators, Eq Energy sustained solid returns over the last few months and may actually be approaching a breakup point.

Kid Castle Educational

Risk-Adjusted Performance

Weakest

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

Pair Trading with Eq Energy and Kid Castle

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

The idea behind Eq Energy Drink and Kid Castle Educational 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.