Correlation Between KARX and United Express
Can any of the company-specific risk be diversified away by investing in both KARX and United Express 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 KARX and United Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KARX and United Express, you can compare the effects of market volatilities on KARX and United Express 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 KARX with a short position of United Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of KARX and United Express.
Diversification Opportunities for KARX and United Express
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KARX and United is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding KARX and United Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Express and KARX 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 KARX are associated (or correlated) with United Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Express has no effect on the direction of KARX i.e., KARX and United Express go up and down completely randomly.
Pair Corralation between KARX and United Express
Given the investment horizon of 90 days KARX is expected to generate 1.72 times more return on investment than United Express. However, KARX is 1.72 times more volatile than United Express. It trades about 0.06 of its potential returns per unit of risk. United Express is currently generating about -0.05 per unit of risk. If you would invest 50.00 in KARX on August 15, 2025 and sell it today you would earn a total of 4.00 from holding KARX or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
KARX vs. United Express
Performance |
| Timeline |
| KARX |
| United Express |
KARX and United Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KARX and United Express
The main advantage of trading using opposite KARX and United Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KARX position performs unexpectedly, United Express 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 United Express will offset losses from the drop in United Express' long position.| KARX vs. Logistics Development Group | KARX vs. flooidCX Corp | KARX vs. YTO Express Holdings | KARX vs. Manolete Partners Plc |
| United Express vs. Cavitation Techs | United Express vs. Next10 Inc | United Express vs. FBR Limited | United Express vs. IBC Advanced Alloys |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |