Correlation Between Capstone Companies and Kronos Advanced

Can any of the company-specific risk be diversified away by investing in both Capstone Companies and Kronos Advanced 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 Capstone Companies and Kronos Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Capstone Companies and Kronos Advanced Technologies, you can compare the effects of market volatilities on Capstone Companies and Kronos Advanced 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 Capstone Companies with a short position of Kronos Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Companies and Kronos Advanced.

Diversification Opportunities for Capstone Companies and Kronos Advanced

0.0

Correlation Coefficient

Capstone Companies  Kronos Advanced

Pay attention - limited upside

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

Pair Corralation between Capstone Companies and Kronos Advanced

If you would invest (100.00) in Kronos Advanced Technologies on August 26, 2025 and sell it today you would earn a total of  100.00  from holding Kronos Advanced Technologies or generate -100.0% return on investment over 90 days.

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

Capstone Companies  vs.  Kronos Advanced Technologies

Capstone Companies

Risk-Adjusted Performance

Soft

Over the last 90 days Capstone Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Capstone Companies is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Kronos Advanced Tech

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Kronos Advanced Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Kronos Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Capstone Companies and Kronos Advanced

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

The idea behind Capstone Companies and Kronos Advanced Technologies 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.