Correlation Between Nauticus Robotics and Astronics
Can any of the company-specific risk be diversified away by investing in both Nauticus Robotics and Astronics 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 Nauticus Robotics and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nauticus Robotics and Astronics, you can compare the effects of market volatilities on Nauticus Robotics and Astronics 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 Nauticus Robotics with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nauticus Robotics and Astronics.
Diversification Opportunities for Nauticus Robotics and Astronics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nauticus and Astronics is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nauticus Robotics and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Nauticus Robotics 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 Nauticus Robotics are associated (or correlated) with Astronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics has no effect on the direction of Nauticus Robotics i.e., Nauticus Robotics and Astronics go up and down completely randomly.
Pair Corralation between Nauticus Robotics and Astronics
Assuming the 90 days horizon Nauticus Robotics is expected to generate 4.99 times more return on investment than Astronics. However, Nauticus Robotics is 4.99 times more volatile than Astronics. It trades about 0.03 of its potential returns per unit of risk. Astronics is currently generating about 0.05 per unit of risk. If you would invest 20.00 in Nauticus Robotics on August 26, 2024 and sell it today you would lose (18.84) from holding Nauticus Robotics or give up 94.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.47% |
| Values | Daily Returns |
Nauticus Robotics vs. Astronics
Performance |
| Timeline |
| Nauticus Robotics |
| Astronics |
Nauticus Robotics and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nauticus Robotics and Astronics
The main advantage of trading using opposite Nauticus Robotics and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nauticus Robotics position performs unexpectedly, Astronics 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 Astronics will offset losses from the drop in Astronics' long position.| Nauticus Robotics vs. Nauticus Robotics | Nauticus Robotics vs. Chardan NexTech Acquisition | Nauticus Robotics vs. Arbe Robotics Ltd | Nauticus Robotics vs. Gorilla Technology Group |
| Astronics vs. Ducommun Incorporated | Astronics vs. Innovative Solutions and | Astronics vs. National Presto Industries | Astronics vs. Park Electrochemical |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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