Correlation Between BIO Key and Knightscope
Can any of the company-specific risk be diversified away by investing in both BIO Key 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 BIO Key and Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIO Key International and Knightscope, you can compare the effects of market volatilities on BIO Key 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 BIO Key with a short position of Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIO Key and Knightscope.
Diversification Opportunities for BIO Key and Knightscope
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BIO and Knightscope is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding BIO Key International and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and BIO Key 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 BIO Key International 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 BIO Key i.e., BIO Key and Knightscope go up and down completely randomly.
Pair Corralation between BIO Key and Knightscope
Given the investment horizon of 90 days BIO Key International is expected to under-perform the Knightscope. In addition to that, BIO Key is 1.19 times more volatile than Knightscope. It trades about -0.01 of its total potential returns per unit of risk. Knightscope is currently generating about 0.01 per unit of volatility. If you would invest 3,300 in Knightscope on September 2, 2024 and sell it today you would lose (1,501) from holding Knightscope or give up 45.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIO Key International vs. Knightscope
Performance |
| Timeline |
| BIO Key International |
| Knightscope |
BIO Key and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIO Key and Knightscope
The main advantage of trading using opposite BIO Key and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIO Key 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.| BIO Key vs. LogicMark | BIO Key vs. SSC Security Services | BIO Key vs. ICTS International NV | BIO Key vs. Senstar Technologies |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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