Correlation Between Kraken Robotics and Lithium One
Can any of the company-specific risk be diversified away by investing in both Kraken Robotics and Lithium One 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 Kraken Robotics and Lithium One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraken Robotics and Lithium One Metals, you can compare the effects of market volatilities on Kraken Robotics and Lithium One 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 Kraken Robotics with a short position of Lithium One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Robotics and Lithium One.
Diversification Opportunities for Kraken Robotics and Lithium One
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kraken and Lithium is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Robotics and Lithium One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium One Metals and Kraken 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 Kraken Robotics are associated (or correlated) with Lithium One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium One Metals has no effect on the direction of Kraken Robotics i.e., Kraken Robotics and Lithium One go up and down completely randomly.
Pair Corralation between Kraken Robotics and Lithium One
Assuming the 90 days horizon Kraken Robotics is expected to generate 3.61 times less return on investment than Lithium One. But when comparing it to its historical volatility, Kraken Robotics is 5.87 times less risky than Lithium One. It trades about 0.09 of its potential returns per unit of risk. Lithium One Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Lithium One Metals on November 28, 2024 and sell it today you would lose (43.88) from holding Lithium One Metals or give up 97.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kraken Robotics vs. Lithium One Metals
Performance |
| Timeline |
| Kraken Robotics |
| Lithium One Metals |
Kraken Robotics and Lithium One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Robotics and Lithium One
The main advantage of trading using opposite Kraken Robotics and Lithium One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Robotics position performs unexpectedly, Lithium One 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 Lithium One will offset losses from the drop in Lithium One's long position.| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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