Correlation Between Kibush Capital and Desktop Metal

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kibush Capital and Desktop Metal 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 Kibush Capital and Desktop Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kibush Capital Corp and Desktop Metal, you can compare the effects of market volatilities on Kibush Capital and Desktop Metal 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 Kibush Capital with a short position of Desktop Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kibush Capital and Desktop Metal.

Diversification Opportunities for Kibush Capital and Desktop Metal

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Kibush and Desktop is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kibush Capital Corp and Desktop Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desktop Metal and Kibush 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 Kibush Capital Corp are associated (or correlated) with Desktop Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desktop Metal has no effect on the direction of Kibush Capital i.e., Kibush Capital and Desktop Metal go up and down completely randomly.

Pair Corralation between Kibush Capital and Desktop Metal

Given the investment horizon of 90 days Kibush Capital Corp is expected to generate 2.22 times more return on investment than Desktop Metal. However, Kibush Capital is 2.22 times more volatile than Desktop Metal. It trades about 0.03 of its potential returns per unit of risk. Desktop Metal is currently generating about -0.04 per unit of risk. If you would invest  0.33  in Kibush Capital Corp on August 28, 2022 and sell it today you would lose (0.30)  from holding Kibush Capital Corp or give up 90.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.79%
ValuesDaily Returns

Kibush Capital Corp  vs.  Desktop Metal

 Performance (%) 
       Timeline  
Kibush Capital Corp 
Kibush Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Kibush Capital Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile fundamental indicators, Kibush Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Kibush Price Channel

Desktop Metal 
Desktop Performance
0 of 100
Over the last 90 days Desktop Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's primary indicators remain relatively steady which may send shares a bit higher in December 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Desktop Price Channel

Kibush Capital and Desktop Metal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kibush Capital and Desktop Metal

The main advantage of trading using opposite Kibush Capital and Desktop Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kibush Capital position performs unexpectedly, Desktop Metal 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 Desktop Metal will offset losses from the drop in Desktop Metal's long position.
Kibush Capital vs. Nano Mobile Healthcare
The idea behind Kibush Capital Corp and Desktop Metal 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.
Desktop Metal vs. Exxon Mobil Corp
Desktop Metal vs. Bristol Myer Squi
Desktop Metal vs. Apple Inc
Desktop Metal vs. Microsoft Corp
Check out your portfolio center. 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go