Correlation Between Vivakor and World Kinect

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

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

Diversification Opportunities for Vivakor and World Kinect

-0.49

Correlation Coefficient

Vivakor  World Kinect

Very good diversification

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

Pair Corralation between Vivakor and World Kinect

Given the investment horizon of 90 days Vivakor is expected to generate 5.89 times more return on investment than World Kinect. However, Vivakor is 5.89 times more volatile than World Kinect. It trades about 0.1 of its potential returns per unit of risk. World Kinect is currently generating about -0.01 per unit of risk. If you would invest  82.00  in Vivakor on May 6, 2025 and sell it today you would earn a total of  29.00  from holding Vivakor or generate 35.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Vivakor  vs.  World Kinect

Vivakor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vivakor are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Vivakor disclosed solid returns over the last few months and may actually be approaching a breakup point.

World Kinect

Risk-Adjusted Performance

Very Weak

Over the last 90 days World Kinect has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, World Kinect is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Vivakor and World Kinect

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

The idea behind Vivakor and World Kinect 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.