Correlation Between Kaixin Auto and Marin Software

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

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

Diversification Opportunities for Kaixin Auto and Marin Software

-0.12

Correlation Coefficient

Kaixin Auto  Marin Software

Good diversification

The 3 months correlation between Kaixin and Marin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kaixin Auto Holdings and Marin Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marin Software and Kaixin Auto 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 Kaixin Auto Holdings are associated (or correlated) with Marin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marin Software has no effect on the direction of Kaixin Auto i.e., Kaixin Auto and Marin Software go up and down completely randomly.

Pair Corralation between Kaixin Auto and Marin Software

Given the investment horizon of 90 days Kaixin Auto Holdings is expected to under-perform the Marin Software. But the stock apears to be less risky and, when comparing its historical volatility, Kaixin Auto Holdings is 32.8 times less risky than Marin Software. The stock trades about -0.01 of its potential returns per unit of risk. The Marin Software is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  138.00  in Marin Software on May 7, 2025 and sell it today you would earn a total of  344,862  from holding Marin Software or generate 249900.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	74.19%
Values	Daily Returns

Kaixin Auto Holdings  vs.  Marin Software

Kaixin Auto Holdings

Risk-Adjusted Performance

Weakest

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

Marin Software

Risk-Adjusted Performance

Good

Over the last 90 days Marin Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak forward indicators, Marin Software displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kaixin Auto and Marin Software

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

The idea behind Kaixin Auto Holdings and Marin Software 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.