Correlation Between Logistics Development and KARX

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

Diversification Opportunities for Logistics Development and KARX

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Logistics and KARX is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Logistics Development Group and KARX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KARX and Logistics Development 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 Logistics Development Group are associated (or correlated) with KARX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KARX has no effect on the direction of Logistics Development i.e., Logistics Development and KARX go up and down completely randomly.

Pair Corralation between Logistics Development and KARX

Assuming the 90 days horizon Logistics Development Group is expected to generate 0.38 times more return on investment than KARX. However, Logistics Development Group is 2.66 times less risky than KARX. It trades about 0.18 of its potential returns per unit of risk. KARX is currently generating about 0.05 per unit of risk. If you would invest  15.00  in Logistics Development Group on August 31, 2025 and sell it today you would earn a total of  8.00  from holding Logistics Development Group or generate 53.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy96.92%
ValuesDaily Returns

Logistics Development Group  vs.  KARX

 Performance 
       Timeline  
Logistics Development 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Logistics Development Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Logistics Development reported solid returns over the last few months and may actually be approaching a breakup point.
KARX 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in KARX are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, KARX showed solid returns over the last few months and may actually be approaching a breakup point.

Logistics Development and KARX Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Logistics Development and KARX

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

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