Correlation Between Know Labs and Itron
Can any of the company-specific risk be diversified away by investing in both Know Labs and Itron 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 Know Labs and Itron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Know Labs and Itron Inc, you can compare the effects of market volatilities on Know Labs and Itron 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 Know Labs with a short position of Itron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Know Labs and Itron.
Diversification Opportunities for Know Labs and Itron
Very weak diversification
The 3 months correlation between Know and Itron is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Know Labs and Itron Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itron Inc and Know Labs 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 Know Labs are associated (or correlated) with Itron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itron Inc has no effect on the direction of Know Labs i.e., Know Labs and Itron go up and down completely randomly.
Pair Corralation between Know Labs and Itron
Considering the 90-day investment horizon Know Labs is expected to generate 7.88 times more return on investment than Itron. However, Know Labs is 7.88 times more volatile than Itron Inc. It trades about 0.04 of its potential returns per unit of risk. Itron Inc is currently generating about -0.15 per unit of risk. If you would invest 15.00 in Know Labs on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Know Labs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Know Labs vs. Itron Inc
Performance |
| Timeline |
| Know Labs |
| Itron Inc |
Know Labs and Itron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Know Labs and Itron
The main advantage of trading using opposite Know Labs and Itron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Know Labs position performs unexpectedly, Itron 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 Itron will offset losses from the drop in Itron's long position.| Know Labs vs. Wearable Devices | Know Labs vs. Yoshiharu Global Co | Know Labs vs. bioAffinity Technologies, | Know Labs vs. Jianzhi Education Technology |
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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