Correlation Between Knightscope and Aker Carbon
Can any of the company-specific risk be diversified away by investing in both Knightscope and Aker Carbon 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 Knightscope and Aker Carbon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and Aker Carbon Capture, you can compare the effects of market volatilities on Knightscope and Aker Carbon 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 Knightscope with a short position of Aker Carbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and Aker Carbon.
Diversification Opportunities for Knightscope and Aker Carbon
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Knightscope and Aker is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Aker Carbon Capture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Carbon Capture and Knightscope 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 Knightscope are associated (or correlated) with Aker Carbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Carbon Capture has no effect on the direction of Knightscope i.e., Knightscope and Aker Carbon go up and down completely randomly.
Pair Corralation between Knightscope and Aker Carbon
Given the investment horizon of 90 days Knightscope is expected to generate 1.71 times more return on investment than Aker Carbon. However, Knightscope is 1.71 times more volatile than Aker Carbon Capture. It trades about 0.0 of its potential returns per unit of risk. Aker Carbon Capture is currently generating about -0.01 per unit of risk. If you would invest 8,550 in Knightscope on August 31, 2024 and sell it today you would lose (6,814) from holding Knightscope or give up 79.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Knightscope vs. Aker Carbon Capture
Performance |
| Timeline |
| Knightscope |
| Aker Carbon Capture |
Knightscope and Aker Carbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and Aker Carbon
The main advantage of trading using opposite Knightscope and Aker Carbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope position performs unexpectedly, Aker Carbon 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 Aker Carbon will offset losses from the drop in Aker Carbon's long position.| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
| Aker Carbon vs. CO2 Solutions | Aker Carbon vs. LifeQuest World | Aker Carbon vs. TOMI Environmental Solutions | Aker Carbon vs. Zurn Elkay Water |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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