Correlation Between Aware and KNOREX
Can any of the company-specific risk be diversified away by investing in both Aware and KNOREX 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 Aware and KNOREX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aware Inc and KNOREX LTD, you can compare the effects of market volatilities on Aware and KNOREX 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 Aware with a short position of KNOREX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aware and KNOREX.
Diversification Opportunities for Aware and KNOREX
Significant diversification
The 3 months correlation between Aware and KNOREX is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aware Inc and KNOREX LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KNOREX LTD and Aware 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 Aware Inc are associated (or correlated) with KNOREX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KNOREX LTD has no effect on the direction of Aware i.e., Aware and KNOREX go up and down completely randomly.
Pair Corralation between Aware and KNOREX
Given the investment horizon of 90 days Aware Inc is expected to generate 0.68 times more return on investment than KNOREX. However, Aware Inc is 1.47 times less risky than KNOREX. It trades about 0.02 of its potential returns per unit of risk. KNOREX LTD is currently generating about -0.13 per unit of risk. If you would invest 220.00 in Aware Inc on August 29, 2025 and sell it today you would lose (1.00) from holding Aware Inc or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.25% |
| Values | Daily Returns |
Aware Inc vs. KNOREX LTD
Performance |
| Timeline |
| Aware Inc |
| KNOREX LTD |
Aware and KNOREX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aware and KNOREX
The main advantage of trading using opposite Aware and KNOREX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aware position performs unexpectedly, KNOREX 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 KNOREX will offset losses from the drop in KNOREX's long position.| Aware vs. SD Standard Drilling | Aware vs. Baristas Coffee | Aware vs. Airborne Wireless Network | Aware vs. BJs Restaurants |
| KNOREX vs. Hanover Foods | KNOREX vs. Suntory Beverage Food | KNOREX vs. Mitsubishi UFJ Lease | KNOREX vs. Collins Foods Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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