Correlation Between Knightscope and Calbee
Can any of the company-specific risk be diversified away by investing in both Knightscope and Calbee 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 Calbee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and Calbee Inc, you can compare the effects of market volatilities on Knightscope and Calbee 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 Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and Calbee.
Diversification Opportunities for Knightscope and Calbee
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Knightscope and Calbee is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc 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 Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of Knightscope i.e., Knightscope and Calbee go up and down completely randomly.
Pair Corralation between Knightscope and Calbee
Given the investment horizon of 90 days Knightscope is expected to under-perform the Calbee. In addition to that, Knightscope is 2.43 times more volatile than Calbee Inc. It trades about -0.01 of its total potential returns per unit of risk. Calbee Inc is currently generating about 0.01 per unit of volatility. If you would invest 491.00 in Calbee Inc on August 29, 2024 and sell it today you would lose (37.00) from holding Calbee Inc or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knightscope vs. Calbee Inc
Performance |
| Timeline |
| Knightscope |
| Calbee Inc |
Knightscope and Calbee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and Calbee
The main advantage of trading using opposite Knightscope and Calbee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope position performs unexpectedly, Calbee 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 Calbee will offset losses from the drop in Calbee's long position.| Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Guardforce AI Co | Knightscope vs. Merck Company |
| Calbee vs. Toyo Suisan Kaisha | Calbee vs. Treehouse Foods | Calbee vs. John B Sanfilippo | Calbee vs. Campbell Soup |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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