Correlation Between Colabor and Kraig Biocraft

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

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

Diversification Opportunities for Colabor and Kraig Biocraft

0.04

Correlation Coefficient

Colabor  Kraig Biocraft

Significant diversification

The 3 months correlation between Colabor and Kraig is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Colabor Group and Kraig Biocraft Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraig Biocraft Labs and Colabor 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 Colabor Group are associated (or correlated) with Kraig Biocraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraig Biocraft Labs has no effect on the direction of Colabor i.e., Colabor and Kraig Biocraft go up and down completely randomly.

Pair Corralation between Colabor and Kraig Biocraft

Assuming the 90 days trading horizon Colabor Group is expected to generate 0.81 times more return on investment than Kraig Biocraft. However, Colabor Group is 1.23 times less risky than Kraig Biocraft. It trades about -0.03 of its potential returns per unit of risk. Kraig Biocraft Labs is currently generating about -0.04 per unit of risk. If you would invest  85.00  in Colabor Group on May 4, 2025 and sell it today you would lose (7.00) from holding Colabor Group or give up 8.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Colabor Group  vs.  Kraig Biocraft Labs

Colabor Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Colabor Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Colabor is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Kraig Biocraft Labs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kraig Biocraft Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Colabor and Kraig Biocraft

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

The idea behind Colabor Group and Kraig Biocraft Labs 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.