Correlation Between Eat Beyond and Knightscope
Can any of the company-specific risk be diversified away by investing in both Eat Beyond 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 Eat Beyond and Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eat Beyond Global and Knightscope, you can compare the effects of market volatilities on Eat Beyond 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 Eat Beyond with a short position of Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Knightscope.
Diversification Opportunities for Eat Beyond and Knightscope
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eat and Knightscope is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and Eat Beyond 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 Eat Beyond Global 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 Eat Beyond i.e., Eat Beyond and Knightscope go up and down completely randomly.
Pair Corralation between Eat Beyond and Knightscope
Assuming the 90 days horizon Eat Beyond Global is expected to generate 1.91 times more return on investment than Knightscope. However, Eat Beyond is 1.91 times more volatile than Knightscope. It trades about -0.04 of its potential returns per unit of risk. Knightscope is currently generating about -0.27 per unit of risk. If you would invest 10.00 in Eat Beyond Global on November 18, 2024 and sell it today you would lose (1.80) from holding Eat Beyond Global or give up 18.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Beyond Global vs. Knightscope
Performance |
| Timeline |
| Eat Beyond Global |
| Knightscope |
Eat Beyond and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Knightscope
The main advantage of trading using opposite Eat Beyond and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond 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.| Eat Beyond vs. Elysee Development Corp | Eat Beyond vs. Azimut Holding SpA | Eat Beyond vs. Ameritrans Capital Corp | Eat Beyond vs. Aimia Inc |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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