Correlation Between Iveda Solutions and Knightscope
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions 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 Iveda Solutions and Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions Warrant and Knightscope, you can compare the effects of market volatilities on Iveda Solutions 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 Iveda Solutions with a short position of Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and Knightscope.
Diversification Opportunities for Iveda Solutions and Knightscope
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iveda and Knightscope is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions Warrant and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and Iveda Solutions 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 Iveda Solutions Warrant 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 Iveda Solutions i.e., Iveda Solutions and Knightscope go up and down completely randomly.
Pair Corralation between Iveda Solutions and Knightscope
Assuming the 90 days horizon Iveda Solutions Warrant is expected to generate 3.47 times more return on investment than Knightscope. However, Iveda Solutions is 3.47 times more volatile than Knightscope. It trades about 0.12 of its potential returns per unit of risk. Knightscope is currently generating about -0.1 per unit of risk. If you would invest 19.00 in Iveda Solutions Warrant on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Iveda Solutions Warrant or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Iveda Solutions Warrant vs. Knightscope
Performance |
| Timeline |
| Iveda Solutions Warrant |
| Knightscope |
Iveda Solutions and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iveda Solutions and Knightscope
The main advantage of trading using opposite Iveda Solutions and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions 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.| Iveda Solutions vs. Iveda Solutions | Iveda Solutions vs. Aclarion | Iveda Solutions vs. Thayer Ventures Acquisition | Iveda Solutions vs. NexGel Warrant |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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