Correlation Between Knightscope and ATWEC Technologies
Can any of the company-specific risk be diversified away by investing in both Knightscope and ATWEC 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 Knightscope and ATWEC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and ATWEC Technologies, you can compare the effects of market volatilities on Knightscope and ATWEC 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 Knightscope with a short position of ATWEC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and ATWEC Technologies.
Diversification Opportunities for Knightscope and ATWEC Technologies
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Knightscope and ATWEC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and ATWEC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATWEC Technologies 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 ATWEC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATWEC Technologies has no effect on the direction of Knightscope i.e., Knightscope and ATWEC Technologies go up and down completely randomly.
Pair Corralation between Knightscope and ATWEC Technologies
Given the investment horizon of 90 days Knightscope is expected to generate 33.89 times less return on investment than ATWEC Technologies. But when comparing it to its historical volatility, Knightscope is 3.6 times less risky than ATWEC Technologies. It trades about 0.01 of its potential returns per unit of risk. ATWEC Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.09 in ATWEC Technologies on September 2, 2024 and sell it today you would earn a total of 0.03 from holding ATWEC Technologies or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Knightscope vs. ATWEC Technologies
Performance |
| Timeline |
| Knightscope |
| ATWEC Technologies |
Knightscope and ATWEC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and ATWEC Technologies
The main advantage of trading using opposite Knightscope and ATWEC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope position performs unexpectedly, ATWEC 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 ATWEC Technologies will offset losses from the drop in ATWEC Technologies' long position.| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
| ATWEC Technologies vs. Allegion PLC | ATWEC Technologies vs. MSA Safety | ATWEC Technologies vs. HUMANA INC | ATWEC Technologies vs. Aquagold International |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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