Correlation Between Real Matters and Kinaxis

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

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

Diversification Opportunities for Real Matters and Kinaxis

-0.45

Correlation Coefficient

Real Matters  Kinaxis

Very good diversification

The 3 months correlation between Real and Kinaxis is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Real Matters and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis and Real Matters 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 Real Matters are associated (or correlated) with Kinaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinaxis has no effect on the direction of Real Matters i.e., Real Matters and Kinaxis go up and down completely randomly.

Pair Corralation between Real Matters and Kinaxis

Assuming the 90 days horizon Real Matters is expected to generate 0.69 times more return on investment than Kinaxis. However, Real Matters is 1.46 times less risky than Kinaxis. It trades about 0.02 of its potential returns per unit of risk. Kinaxis is currently generating about -0.01 per unit of risk. If you would invest  414.00  in Real Matters on June 2, 2025 and sell it today you would earn a total of  5.00  from holding Real Matters or generate 1.21% return on investment over 90 days.

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

Real Matters  vs.  Kinaxis

Real Matters

Risk-Adjusted Performance

Weak

Over the last 90 days Real Matters has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Real Matters is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Kinaxis

Risk-Adjusted Performance

Weakest

Over the last 90 days Kinaxis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Kinaxis is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Real Matters and Kinaxis

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

The idea behind Real Matters and Kinaxis 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.