Correlation Between Wallix Group and Kalray SA

Can any of the company-specific risk be diversified away by investing in both Wallix Group and Kalray SA 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 Wallix Group and Kalray SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wallix Group SA and Kalray SA, you can compare the effects of market volatilities on Wallix Group and Kalray SA 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 Wallix Group with a short position of Kalray SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallix Group and Kalray SA.

Diversification Opportunities for Wallix Group and Kalray SA

0.15

Correlation Coefficient

Wallix Group  Kalray SA

Average diversification

The 3 months correlation between Wallix and Kalray is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wallix Group SA and Kalray SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalray SA and Wallix Group 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 Wallix Group SA are associated (or correlated) with Kalray SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalray SA has no effect on the direction of Wallix Group i.e., Wallix Group and Kalray SA go up and down completely randomly.

Pair Corralation between Wallix Group and Kalray SA

Assuming the 90 days trading horizon Wallix Group SA is expected to generate 0.36 times more return on investment than Kalray SA. However, Wallix Group SA is 2.81 times less risky than Kalray SA. It trades about 0.28 of its potential returns per unit of risk. Kalray SA is currently generating about 0.04 per unit of risk. If you would invest  1,490  in Wallix Group SA on April 24, 2025 and sell it today you would earn a total of  980.00  from holding Wallix Group SA or generate 65.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Wallix Group SA  vs.  Kalray SA

Wallix Group SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wallix Group SA are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Wallix Group reported solid returns over the last few months and may actually be approaching a breakup point.

Kalray SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kalray SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Kalray SA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wallix Group and Kalray SA

The main advantage of trading using opposite Wallix Group and Kalray SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wallix Group position performs unexpectedly, Kalray SA 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 Kalray SA will offset losses from the drop in Kalray SA's long position.

The idea behind Wallix Group SA and Kalray SA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.