Correlation Between Knife River and Peraso
Can any of the company-specific risk be diversified away by investing in both Knife River and Peraso 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 Knife River and Peraso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knife River and Peraso Inc, you can compare the effects of market volatilities on Knife River and Peraso 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 Knife River with a short position of Peraso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knife River and Peraso.
Diversification Opportunities for Knife River and Peraso
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Knife and Peraso is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Knife River and Peraso Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peraso Inc and Knife River 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 Knife River are associated (or correlated) with Peraso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peraso Inc has no effect on the direction of Knife River i.e., Knife River and Peraso go up and down completely randomly.
Pair Corralation between Knife River and Peraso
Considering the 90-day investment horizon Knife River is expected to generate 0.24 times more return on investment than Peraso. However, Knife River is 4.09 times less risky than Peraso. It trades about 0.11 of its potential returns per unit of risk. Peraso Inc is currently generating about -0.03 per unit of risk. If you would invest 3,551 in Knife River on November 27, 2024 and sell it today you would earn a total of 5,722 from holding Knife River or generate 161.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.44% |
| Values | Daily Returns |
Knife River vs. Peraso Inc
Performance |
| Timeline |
| Knife River |
| Peraso Inc |
Knife River and Peraso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knife River and Peraso
The main advantage of trading using opposite Knife River and Peraso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knife River position performs unexpectedly, Peraso 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 Peraso will offset losses from the drop in Peraso's long position.| Knife River vs. Franklin Street Properties | Knife River vs. NL Industries | Knife River vs. Eddy Smart Home | Knife River vs. Alto Ingredients |
| Peraso vs. Wisekey International Holding | Peraso vs. SemiLEDS | Peraso vs. GSI Technology | Peraso vs. SEALSQ Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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