Correlation Between KwikClick and Oneconnect Financial

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

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

Diversification Opportunities for KwikClick and Oneconnect Financial

-0.71

Correlation Coefficient

KwikClick  Oneconnect Financial

Pay attention - limited upside

The 3 months correlation between KwikClick and Oneconnect is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding KwikClick and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial and KwikClick 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 KwikClick are associated (or correlated) with Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of KwikClick i.e., KwikClick and Oneconnect Financial go up and down completely randomly.

Pair Corralation between KwikClick and Oneconnect Financial

Given the investment horizon of 90 days KwikClick is expected to under-perform the Oneconnect Financial. In addition to that, KwikClick is 1.2 times more volatile than Oneconnect Financial Technology. It trades about -0.04 of its total potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.12 per unit of volatility. If you would invest  138.00  in Oneconnect Financial Technology on August 26, 2024 and sell it today you would earn a total of  93.00  from holding Oneconnect Financial Technology or generate 67.39% return on investment over 90 days.

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

KwikClick  vs.  Oneconnect Financial Technolog

KwikClick

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KwikClick has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Oneconnect Financial

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oneconnect Financial Technology are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Oneconnect Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KwikClick and Oneconnect Financial

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

The idea behind KwikClick and Oneconnect Financial Technology 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.