Correlation Between Abacus Mining and Kuniko

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Can any of the company-specific risk be diversified away by investing in both Abacus Mining and Kuniko 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 Abacus Mining and Kuniko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abacus Mining and and Kuniko, you can compare the effects of market volatilities on Abacus Mining and Kuniko 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 Abacus Mining with a short position of Kuniko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abacus Mining and Kuniko.

Diversification Opportunities for Abacus Mining and Kuniko

-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Abacus and Kuniko is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Abacus Mining and and Kuniko in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuniko and Abacus Mining 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 Abacus Mining and are associated (or correlated) with Kuniko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuniko has no effect on the direction of Abacus Mining i.e., Abacus Mining and Kuniko go up and down completely randomly.

Pair Corralation between Abacus Mining and Kuniko

Assuming the 90 days horizon Abacus Mining and is expected to generate 6.41 times more return on investment than Kuniko. However, Abacus Mining is 6.41 times more volatile than Kuniko. It trades about 0.11 of its potential returns per unit of risk. Kuniko is currently generating about -0.04 per unit of risk. If you would invest  2.00  in Abacus Mining and on September 12, 2025 and sell it today you would earn a total of  0.50  from holding Abacus Mining and or generate 25.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Abacus Mining and  vs.  Kuniko

 Performance 
       Timeline  
Abacus Mining 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Mining and are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Abacus Mining showed solid returns over the last few months and may actually be approaching a breakup point.
Kuniko 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Kuniko has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Abacus Mining and Kuniko Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Abacus Mining and Kuniko

The main advantage of trading using opposite Abacus Mining and Kuniko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abacus Mining position performs unexpectedly, Kuniko 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 Kuniko will offset losses from the drop in Kuniko's long position.
The idea behind Abacus Mining and and Kuniko 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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