Correlation Between Kraken Robotics and Therma Bright
Can any of the company-specific risk be diversified away by investing in both Kraken Robotics and Therma Bright 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 Kraken Robotics and Therma Bright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraken Robotics and Therma Bright, you can compare the effects of market volatilities on Kraken Robotics and Therma Bright 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 Kraken Robotics with a short position of Therma Bright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Robotics and Therma Bright.
Diversification Opportunities for Kraken Robotics and Therma Bright
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kraken and Therma is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Robotics and Therma Bright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Therma Bright and Kraken Robotics 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 Kraken Robotics are associated (or correlated) with Therma Bright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Therma Bright has no effect on the direction of Kraken Robotics i.e., Kraken Robotics and Therma Bright go up and down completely randomly.
Pair Corralation between Kraken Robotics and Therma Bright
Assuming the 90 days horizon Kraken Robotics is expected to generate 0.46 times more return on investment than Therma Bright. However, Kraken Robotics is 2.17 times less risky than Therma Bright. It trades about 0.19 of its potential returns per unit of risk. Therma Bright is currently generating about -0.11 per unit of risk. If you would invest 147.00 in Kraken Robotics on September 3, 2024 and sell it today you would earn a total of 86.00 from holding Kraken Robotics or generate 58.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraken Robotics vs. Therma Bright
Performance |
| Timeline |
| Kraken Robotics |
| Therma Bright |
Kraken Robotics and Therma Bright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Robotics and Therma Bright
The main advantage of trading using opposite Kraken Robotics and Therma Bright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Robotics position performs unexpectedly, Therma Bright 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 Therma Bright will offset losses from the drop in Therma Bright's long position.| Kraken Robotics vs. Braille Energy Systems | Kraken Robotics vs. Lite Access Technologies | Kraken Robotics vs. Solar Alliance Energy |
| Therma Bright vs. Solar Alliance Energy | Therma Bright vs. Braille Energy Systems | Therma Bright vs. MedMira | Therma Bright vs. Lite Access Technologies |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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