Correlation Between Kraken Robotics and Sensata Technologies
Can any of the company-specific risk be diversified away by investing in both Kraken Robotics and Sensata Technologies 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 Sensata Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraken Robotics and Sensata Technologies Holding, you can compare the effects of market volatilities on Kraken Robotics and Sensata Technologies 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 Sensata Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Robotics and Sensata Technologies.
Diversification Opportunities for Kraken Robotics and Sensata Technologies
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kraken and Sensata is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Robotics and Sensata Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensata Technologies 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 Sensata Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensata Technologies has no effect on the direction of Kraken Robotics i.e., Kraken Robotics and Sensata Technologies go up and down completely randomly.
Pair Corralation between Kraken Robotics and Sensata Technologies
Assuming the 90 days horizon Kraken Robotics is expected to generate 2.03 times more return on investment than Sensata Technologies. However, Kraken Robotics is 2.03 times more volatile than Sensata Technologies Holding. It trades about 0.16 of its potential returns per unit of risk. Sensata Technologies Holding is currently generating about -0.09 per unit of risk. If you would invest 108.00 in Kraken Robotics on August 31, 2024 and sell it today you would earn a total of 49.00 from holding Kraken Robotics or generate 45.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraken Robotics vs. Sensata Technologies Holding
Performance |
| Timeline |
| Kraken Robotics |
| Sensata Technologies |
Kraken Robotics and Sensata Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Robotics and Sensata Technologies
The main advantage of trading using opposite Kraken Robotics and Sensata Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Robotics position performs unexpectedly, Sensata Technologies 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 Sensata Technologies will offset losses from the drop in Sensata Technologies' long position.| Kraken Robotics vs. SaverOne 2014 Ltd | Kraken Robotics vs. Focus Universal | Kraken Robotics vs. Nanalysis Scientific Corp | Kraken Robotics vs. Genasys |
| Sensata Technologies vs. Coherent | Sensata Technologies vs. ESCO Technologies | Sensata Technologies vs. Mesa Laboratories | Sensata Technologies vs. Vishay Precision Group |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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