Correlation Between Kellton Tech and Transport

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

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

Diversification Opportunities for Kellton Tech and Transport

0.73

Correlation Coefficient

Kellton Tech  Transport

Poor diversification

The 3 months correlation between Kellton and Transport is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kellton Tech Solutions and Transport of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport and Kellton Tech 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 Kellton Tech Solutions are associated (or correlated) with Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport has no effect on the direction of Kellton Tech i.e., Kellton Tech and Transport go up and down completely randomly.

Pair Corralation between Kellton Tech and Transport

Assuming the 90 days trading horizon Kellton Tech Solutions is expected to generate 1.63 times more return on investment than Transport. However, Kellton Tech is 1.63 times more volatile than Transport of. It trades about 0.15 of its potential returns per unit of risk. Transport of is currently generating about 0.06 per unit of risk. If you would invest  11,409  in Kellton Tech Solutions on April 24, 2025 and sell it today you would earn a total of  2,888  from holding Kellton Tech Solutions or generate 25.31% return on investment over 90 days.

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

Kellton Tech Solutions  vs.  Transport of

Kellton Tech Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kellton Tech Solutions are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Kellton Tech displayed solid returns over the last few months and may actually be approaching a breakup point.

Transport

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Transport of are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Transport may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Kellton Tech and Transport

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

The idea behind Kellton Tech Solutions and Transport of 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.