Correlation Between Kua Investments and Identillect Technologies

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

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

Diversification Opportunities for Kua Investments and Identillect Technologies

0.0

Correlation Coefficient

Kua Investments  Identillect Technologies

Pay attention - limited upside

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

Pair Corralation between Kua Investments and Identillect Technologies

If you would invest  0.50  in Identillect Technologies Corp on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Identillect Technologies Corp or generate 0.0% return on investment over 90 days.

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

Kua Investments  vs.  Identillect Technologies Corp

Kua Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kua Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Identillect Technologies

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Kua Investments and Identillect Technologies

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

The idea behind Kua Investments and Identillect Technologies Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.