Correlation Between Nogin and Nauticus Robotics
Can any of the company-specific risk be diversified away by investing in both Nogin and Nauticus Robotics 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 Nogin and Nauticus Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nogin Inc and Nauticus Robotics, you can compare the effects of market volatilities on Nogin and Nauticus Robotics 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 Nogin with a short position of Nauticus Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nogin and Nauticus Robotics.
Diversification Opportunities for Nogin and Nauticus Robotics
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nogin and Nauticus is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and Nauticus Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nauticus Robotics and Nogin 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 Nogin Inc are associated (or correlated) with Nauticus Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nauticus Robotics has no effect on the direction of Nogin i.e., Nogin and Nauticus Robotics go up and down completely randomly.
Pair Corralation between Nogin and Nauticus Robotics
Assuming the 90 days horizon Nogin Inc is expected to generate 1.25 times more return on investment than Nauticus Robotics. However, Nogin is 1.25 times more volatile than Nauticus Robotics. It trades about 0.06 of its potential returns per unit of risk. Nauticus Robotics is currently generating about 0.03 per unit of risk. If you would invest 1.90 in Nogin Inc on August 31, 2024 and sell it today you would lose (0.62) from holding Nogin Inc or give up 32.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 35.2% |
| Values | Daily Returns |
Nogin Inc vs. Nauticus Robotics
Performance |
| Timeline |
| Nogin Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nauticus Robotics |
Nogin and Nauticus Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nogin and Nauticus Robotics
The main advantage of trading using opposite Nogin and Nauticus Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nogin position performs unexpectedly, Nauticus Robotics 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 Nauticus Robotics will offset losses from the drop in Nauticus Robotics' long position.The idea behind Nogin Inc and Nauticus Robotics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nauticus Robotics vs. Innovative Solutions and | Nauticus Robotics vs. National Presto Industries | Nauticus Robotics vs. Hexcel | Nauticus Robotics vs. Park Electrochemical |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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