Correlation Between EXPAND and Kava

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

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

Diversification Opportunities for EXPAND and Kava

-0.55

Correlation Coefficient

EXPAND  Kava

Excellent diversification

The 3 months correlation between EXPAND and Kava is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding EXPAND and Kava in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kava and EXPAND 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 EXPAND are associated (or correlated) with Kava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kava has no effect on the direction of EXPAND i.e., EXPAND and Kava go up and down completely randomly.

Pair Corralation between EXPAND and Kava

Assuming the 90 days trading horizon EXPAND is expected to generate 1.45 times more return on investment than Kava. However, EXPAND is 1.45 times more volatile than Kava. It trades about 0.18 of its potential returns per unit of risk. Kava is currently generating about -0.14 per unit of risk. If you would invest  0.01  in EXPAND on July 11, 2025 and sell it today you would earn a total of  0.00  from holding EXPAND or generate 50.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

EXPAND  vs.  Kava

EXPAND

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EXPAND are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, EXPAND sustained solid returns over the last few months and may actually be approaching a breakup point.

Kava

Risk-Adjusted Performance

Weakest

Over the last 90 days Kava has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for Kava shareholders.

Pair Trading with EXPAND and Kava

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

The idea behind EXPAND and Kava 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.