Correlation Between Knightscope and Austin Engineering
Can any of the company-specific risk be diversified away by investing in both Knightscope and Austin Engineering 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 Austin Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and Austin Engineering Limited, you can compare the effects of market volatilities on Knightscope and Austin Engineering 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 Austin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and Austin Engineering.
Diversification Opportunities for Knightscope and Austin Engineering
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Knightscope and Austin is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Austin Engineering Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austin Engineering 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 Austin Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austin Engineering has no effect on the direction of Knightscope i.e., Knightscope and Austin Engineering go up and down completely randomly.
Pair Corralation between Knightscope and Austin Engineering
Given the investment horizon of 90 days Knightscope is expected to generate 1.86 times more return on investment than Austin Engineering. However, Knightscope is 1.86 times more volatile than Austin Engineering Limited. It trades about 0.04 of its potential returns per unit of risk. Austin Engineering Limited is currently generating about 0.05 per unit of risk. If you would invest 2,265 in Knightscope on August 31, 2024 and sell it today you would lose (466.00) from holding Knightscope or give up 20.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Knightscope vs. Austin Engineering Limited
Performance |
| Timeline |
| Knightscope |
| Austin Engineering |
Knightscope and Austin Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and Austin Engineering
The main advantage of trading using opposite Knightscope and Austin Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope position performs unexpectedly, Austin Engineering 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 Austin Engineering will offset losses from the drop in Austin Engineering's long position.| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
| Austin Engineering vs. American Premium Water | Austin Engineering vs. AmeraMex International | Austin Engineering vs. Arts Way Manufacturing Co | Austin Engineering vs. Astec Industries |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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