Correlation Between ATWEC Technologies and Knightscope
Can any of the company-specific risk be diversified away by investing in both ATWEC Technologies and Knightscope 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 ATWEC Technologies and Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATWEC Technologies and Knightscope, you can compare the effects of market volatilities on ATWEC Technologies and Knightscope 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 ATWEC Technologies with a short position of Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATWEC Technologies and Knightscope.
Diversification Opportunities for ATWEC Technologies and Knightscope
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATWEC and Knightscope is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding ATWEC Technologies and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and ATWEC Technologies 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 ATWEC Technologies are associated (or correlated) with Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of ATWEC Technologies i.e., ATWEC Technologies and Knightscope go up and down completely randomly.
Pair Corralation between ATWEC Technologies and Knightscope
Given the investment horizon of 90 days ATWEC Technologies is expected to generate 1.66 times less return on investment than Knightscope. In addition to that, ATWEC Technologies is 1.44 times more volatile than Knightscope. It trades about 0.1 of its total potential returns per unit of risk. Knightscope is currently generating about 0.23 per unit of volatility. If you would invest 736.00 in Knightscope on August 31, 2024 and sell it today you would earn a total of 1,000.00 from holding Knightscope or generate 135.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATWEC Technologies vs. Knightscope
Performance |
| Timeline |
| ATWEC Technologies |
| Knightscope |
ATWEC Technologies and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATWEC Technologies and Knightscope
The main advantage of trading using opposite ATWEC Technologies and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATWEC Technologies position performs unexpectedly, Knightscope 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 Knightscope will offset losses from the drop in Knightscope's long position.| ATWEC Technologies vs. Allegion PLC | ATWEC Technologies vs. MSA Safety | ATWEC Technologies vs. HUMANA INC | ATWEC Technologies vs. Aquagold International |
| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
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 the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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