Correlation Between Kadestone Capital and Andlauer Healthcare

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

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

Diversification Opportunities for Kadestone Capital and Andlauer Healthcare

0.19

Correlation Coefficient

Kadestone Capital  Andlauer Healthcare

Average diversification

The 3 months correlation between Kadestone and Andlauer is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kadestone Capital Corp and Andlauer Healthcare Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andlauer Healthcare and Kadestone Capital 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 Kadestone Capital Corp are associated (or correlated) with Andlauer Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andlauer Healthcare has no effect on the direction of Kadestone Capital i.e., Kadestone Capital and Andlauer Healthcare go up and down completely randomly.

Pair Corralation between Kadestone Capital and Andlauer Healthcare

Assuming the 90 days trading horizon Kadestone Capital Corp is expected to under-perform the Andlauer Healthcare. In addition to that, Kadestone Capital is 23.0 times more volatile than Andlauer Healthcare Gr. It trades about -0.01 of its total potential returns per unit of risk. Andlauer Healthcare Gr is currently generating about 0.01 per unit of volatility. If you would invest  5,320  in Andlauer Healthcare Gr on April 24, 2025 and sell it today you would earn a total of  10.00  from holding Andlauer Healthcare Gr or generate 0.19% return on investment over 90 days.

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

Kadestone Capital Corp  vs.  Andlauer Healthcare Gr

Kadestone Capital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kadestone Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kadestone Capital is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Andlauer Healthcare

Risk-Adjusted Performance

OK

Over the last 90 days Andlauer Healthcare Gr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Andlauer Healthcare is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Kadestone Capital and Andlauer Healthcare

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

The idea behind Kadestone Capital Corp and Andlauer Healthcare Gr 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.