Correlation Between Halcyon Technology and KGI Securities

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

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

Diversification Opportunities for Halcyon Technology and KGI Securities

0.86

Correlation Coefficient

Halcyon Technology  KGI Securities

Very poor diversification

The 3 months correlation between Halcyon and KGI is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Halcyon Technology Public and KGI Securities Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGI Securities Public and Halcyon Technology 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 Halcyon Technology Public are associated (or correlated) with KGI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGI Securities Public has no effect on the direction of Halcyon Technology i.e., Halcyon Technology and KGI Securities go up and down completely randomly.

Pair Corralation between Halcyon Technology and KGI Securities

Assuming the 90 days trading horizon Halcyon Technology Public is expected to under-perform the KGI Securities. In addition to that, Halcyon Technology is 1.63 times more volatile than KGI Securities Public. It trades about -0.04 of its total potential returns per unit of risk. KGI Securities Public is currently generating about -0.01 per unit of volatility. If you would invest  394.00  in KGI Securities Public on April 24, 2025 and sell it today you would lose (4.00) from holding KGI Securities Public or give up 1.02% of portfolio value over 90 days.

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

Halcyon Technology Public  vs.  KGI Securities Public

Halcyon Technology Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Halcyon Technology Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Halcyon Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

KGI Securities Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days KGI Securities Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, KGI Securities is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Halcyon Technology and KGI Securities

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

The idea behind Halcyon Technology Public and KGI Securities Public 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.