Correlation Between Kid Castle and Eq Energy

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

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

Diversification Opportunities for Kid Castle and Eq Energy

0.0

Correlation Coefficient

Kid Castle  Eq Energy

Pay attention - limited upside

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

Pair Corralation between Kid Castle and Eq Energy

If you would invest  0.13  in Eq Energy Drink on May 2, 2025 and sell it today you would lose (0.09) from holding Eq Energy Drink or give up 69.23% of portfolio value over 90 days.

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

Kid Castle Educational  vs.  Eq Energy Drink

Kid Castle Educational

Risk-Adjusted Performance

Very Weak

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.

Eq Energy Drink

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eq Energy Drink are ranked lower than 6 (%) 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.

Pair Trading with Kid Castle and Eq Energy

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

The idea behind Kid Castle Educational and Eq Energy Drink 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.