Correlation Between Knightscope and Hummingbird Resources
Can any of the company-specific risk be diversified away by investing in both Knightscope and Hummingbird Resources 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 Hummingbird Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and Hummingbird Resources PLC, you can compare the effects of market volatilities on Knightscope and Hummingbird Resources 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 Hummingbird Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and Hummingbird Resources.
Diversification Opportunities for Knightscope and Hummingbird Resources
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Knightscope and Hummingbird is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Hummingbird Resources PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hummingbird Resources PLC 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 Hummingbird Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hummingbird Resources PLC has no effect on the direction of Knightscope i.e., Knightscope and Hummingbird Resources go up and down completely randomly.
Pair Corralation between Knightscope and Hummingbird Resources
Given the investment horizon of 90 days Knightscope is expected to generate 0.71 times more return on investment than Hummingbird Resources. However, Knightscope is 1.41 times less risky than Hummingbird Resources. It trades about 0.08 of its potential returns per unit of risk. Hummingbird Resources PLC is currently generating about -0.17 per unit of risk. If you would invest 1,498 in Knightscope on August 26, 2024 and sell it today you would earn a total of 65.00 from holding Knightscope or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knightscope vs. Hummingbird Resources PLC
Performance |
| Timeline |
| Knightscope |
| Hummingbird Resources PLC |
Knightscope and Hummingbird Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and Hummingbird Resources
The main advantage of trading using opposite Knightscope and Hummingbird Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope position performs unexpectedly, Hummingbird Resources 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 Hummingbird Resources will offset losses from the drop in Hummingbird Resources' long position.| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
| Hummingbird Resources vs. Aurion Resources | Hummingbird Resources vs. Liberty Gold Corp | Hummingbird Resources vs. Orezone Gold Corp | Hummingbird Resources vs. Radisson Mining Resources |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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