Correlation Between Hexagon AB and Kraken Robotics
Can any of the company-specific risk be diversified away by investing in both Hexagon AB and Kraken Robotics 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 Hexagon AB and Kraken Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexagon AB ADR and Kraken Robotics, you can compare the effects of market volatilities on Hexagon AB and Kraken Robotics 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 Hexagon AB with a short position of Kraken Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon AB and Kraken Robotics.
Diversification Opportunities for Hexagon AB and Kraken Robotics
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hexagon and Kraken is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon AB ADR and Kraken Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Robotics and Hexagon AB 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 Hexagon AB ADR are associated (or correlated) with Kraken Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Robotics has no effect on the direction of Hexagon AB i.e., Hexagon AB and Kraken Robotics go up and down completely randomly.
Pair Corralation between Hexagon AB and Kraken Robotics
Assuming the 90 days horizon Hexagon AB is expected to generate 9.05 times less return on investment than Kraken Robotics. But when comparing it to its historical volatility, Hexagon AB ADR is 1.96 times less risky than Kraken Robotics. It trades about 0.02 of its potential returns per unit of risk. Kraken Robotics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Kraken Robotics on December 6, 2024 and sell it today you would earn a total of 122.00 from holding Kraken Robotics or generate 321.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexagon AB ADR vs. Kraken Robotics
Performance |
| Timeline |
| Hexagon AB ADR |
| Kraken Robotics |
Hexagon AB and Kraken Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexagon AB and Kraken Robotics
The main advantage of trading using opposite Hexagon AB and Kraken Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexagon AB position performs unexpectedly, Kraken Robotics 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 Kraken Robotics will offset losses from the drop in Kraken Robotics' long position.| Hexagon AB vs. Novanta | Hexagon AB vs. Fortive Corp | Hexagon AB vs. Vishay Precision Group | Hexagon AB vs. Itron Inc |
| Kraken Robotics vs. SaverOne 2014 Ltd | Kraken Robotics vs. Focus Universal | Kraken Robotics vs. Nanalysis Scientific Corp | Kraken Robotics vs. Genasys |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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