Correlation Between Keen Vision and Roman DBDR

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

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

Diversification Opportunities for Keen Vision and Roman DBDR

0.52

Correlation Coefficient

Keen Vision  Roman DBDR

Very weak diversification

The 3 months correlation between Keen and Roman is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Keen Vision Acquisition and Roman DBDR Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roman DBDR Acquisition and Keen Vision 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 Keen Vision Acquisition are associated (or correlated) with Roman DBDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roman DBDR Acquisition has no effect on the direction of Keen Vision i.e., Keen Vision and Roman DBDR go up and down completely randomly.

Pair Corralation between Keen Vision and Roman DBDR

Assuming the 90 days horizon Keen Vision Acquisition is expected to generate 64.05 times more return on investment than Roman DBDR. However, Keen Vision is 64.05 times more volatile than Roman DBDR Acquisition. It trades about 0.12 of its potential returns per unit of risk. Roman DBDR Acquisition is currently generating about 0.11 per unit of risk. If you would invest  7.00  in Keen Vision Acquisition on May 5, 2025 and sell it today you would earn a total of  2.49  from holding Keen Vision Acquisition or generate 35.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	63.49%
Values	Daily Returns

Keen Vision Acquisition  vs.  Roman DBDR Acquisition

Keen Vision Acquisition

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keen Vision Acquisition are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental indicators, Keen Vision showed solid returns over the last few months and may actually be approaching a breakup point.

Roman DBDR Acquisition

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Roman DBDR Acquisition are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Roman DBDR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Keen Vision and Roman DBDR

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

The idea behind Keen Vision Acquisition and Roman DBDR Acquisition 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.