Correlation Between Connected Media and KNW Old

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

Diversification Opportunities for Connected Media and KNW Old

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Connected and KNW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Connected Media Tech and KNW Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KNW Old and Connected Media 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 Connected Media Tech are associated (or correlated) with KNW Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KNW Old has no effect on the direction of Connected Media i.e., Connected Media and KNW Old go up and down completely randomly.

Pair Corralation between Connected Media and KNW Old

If you would invest  79.00  in KNW Old on September 10, 2025 and sell it today you would earn a total of  2.00  from holding KNW Old or generate 2.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy44.44%
ValuesDaily Returns

Connected Media Tech  vs.  KNW Old

 Performance 
       Timeline  
Connected Media Tech 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Connected Media Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Connected Media is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
KNW Old 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Over the last 90 days KNW Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unfluctuating basic indicators, KNW Old showed solid returns over the last few months and may actually be approaching a breakup point.

Connected Media and KNW Old Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Connected Media and KNW Old

The main advantage of trading using opposite Connected Media and KNW Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Connected Media position performs unexpectedly, KNW Old 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 KNW Old will offset losses from the drop in KNW Old's long position.
The idea behind Connected Media Tech and KNW Old 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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