Correlation Between Knightscope and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Knightscope and Eshallgo 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 Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and Eshallgo Class A, you can compare the effects of market volatilities on Knightscope and Eshallgo 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 Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and Eshallgo.
Diversification Opportunities for Knightscope and Eshallgo
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Knightscope and Eshallgo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A 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 Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Knightscope i.e., Knightscope and Eshallgo go up and down completely randomly.
Pair Corralation between Knightscope and Eshallgo
Given the investment horizon of 90 days Knightscope is expected to generate 4.16 times more return on investment than Eshallgo. However, Knightscope is 4.16 times more volatile than Eshallgo Class A. It trades about 0.07 of its potential returns per unit of risk. Eshallgo Class A is currently generating about 0.09 per unit of risk. If you would invest 465.00 in Knightscope on January 18, 2025 and sell it today you would earn a total of 17.50 from holding Knightscope or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knightscope vs. Eshallgo Class A
Performance |
| Timeline |
| Knightscope |
| Eshallgo Class A |
Knightscope and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and Eshallgo
The main advantage of trading using opposite Knightscope and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
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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