Correlation Between Kubient and KLDiscovery
Can any of the company-specific risk be diversified away by investing in both Kubient and KLDiscovery 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 Kubient and KLDiscovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kubient and KLDiscovery, you can compare the effects of market volatilities on Kubient and KLDiscovery 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 Kubient with a short position of KLDiscovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kubient and KLDiscovery.
Diversification Opportunities for Kubient and KLDiscovery
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kubient and KLDiscovery is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kubient and KLDiscovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLDiscovery and Kubient 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 Kubient are associated (or correlated) with KLDiscovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLDiscovery has no effect on the direction of Kubient i.e., Kubient and KLDiscovery go up and down completely randomly.
Pair Corralation between Kubient and KLDiscovery
Given the investment horizon of 90 days Kubient is expected to generate 0.99 times more return on investment than KLDiscovery. However, Kubient is 1.01 times less risky than KLDiscovery. It trades about 0.17 of its potential returns per unit of risk. KLDiscovery is currently generating about 0.06 per unit of risk. If you would invest 0.01 in Kubient on August 28, 2025 and sell it today you would earn a total of 0.02 from holding Kubient or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kubient vs. KLDiscovery
Performance |
| Timeline |
| Kubient |
| KLDiscovery |
Kubient and KLDiscovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kubient and KLDiscovery
The main advantage of trading using opposite Kubient and KLDiscovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kubient position performs unexpectedly, KLDiscovery 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 KLDiscovery will offset losses from the drop in KLDiscovery's long position.| Kubient vs. Gladstone Investment | Kubient vs. Eagle Mountain Mining | Kubient vs. BCP Investment Corp | Kubient vs. RTG Mining |
| KLDiscovery vs. BJs Wholesale Club | KLDiscovery vs. Champion Gaming Group | KLDiscovery vs. National Retail Properties | KLDiscovery vs. GameSquare Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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