Correlation Between Kamino and Puffer

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

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

Diversification Opportunities for Kamino and Puffer

0.49

Correlation Coefficient

Kamino  Puffer

Very weak diversification

The 3 months correlation between Kamino and Puffer is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kamino and Puffer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puffer and Kamino 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 Kamino are associated (or correlated) with Puffer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puffer has no effect on the direction of Kamino i.e., Kamino and Puffer go up and down completely randomly.

Pair Corralation between Kamino and Puffer

Assuming the 90 days trading horizon Kamino is expected to under-perform the Puffer. But the crypto coin apears to be less risky and, when comparing its historical volatility, Kamino is 1.22 times less risky than Puffer. The crypto coin trades about -0.06 of its potential returns per unit of risk. The Puffer is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Puffer on May 7, 2025 and sell it today you would lose (5.00) from holding Puffer or give up 20.0% of portfolio value over 90 days.

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

Kamino  vs.  Puffer

Kamino

Risk-Adjusted Performance

Weakest

Over the last 90 days Kamino has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for Kamino shareholders.

Puffer

Risk-Adjusted Performance

Weakest

Over the last 90 days Puffer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Puffer is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kamino and Puffer

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

The idea behind Kamino and Puffer 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.