Correlation Between Thales SA and Nauticus Robotics
Can any of the company-specific risk be diversified away by investing in both Thales SA 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 Thales SA and Nauticus Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thales SA and Nauticus Robotics, you can compare the effects of market volatilities on Thales SA 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 Thales SA with a short position of Nauticus Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thales SA and Nauticus Robotics.
Diversification Opportunities for Thales SA and Nauticus Robotics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thales and Nauticus is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Thales SA and Nauticus Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nauticus Robotics and Thales SA 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 Thales SA 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 Thales SA i.e., Thales SA and Nauticus Robotics go up and down completely randomly.
Pair Corralation between Thales SA and Nauticus Robotics
Assuming the 90 days horizon Thales SA is expected to under-perform the Nauticus Robotics. But the pink sheet apears to be less risky and, when comparing its historical volatility, Thales SA is 7.15 times less risky than Nauticus Robotics. The pink sheet trades about -0.42 of its potential returns per unit of risk. The Nauticus Robotics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Nauticus Robotics on September 1, 2024 and sell it today you would lose (16.00) from holding Nauticus Robotics or give up 11.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thales SA vs. Nauticus Robotics
Performance |
| Timeline |
| Thales SA |
| Nauticus Robotics |
Thales SA and Nauticus Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thales SA and Nauticus Robotics
The main advantage of trading using opposite Thales SA and Nauticus Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thales SA 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.| Thales SA vs. Firan Technology Group | Thales SA vs. 808 Renewable Energy | Thales SA vs. Park Electrochemical | Thales SA vs. Innovative Solutions and |
| Nauticus Robotics vs. Park Electrochemical | Nauticus Robotics vs. National Presto Industries | Nauticus Robotics vs. Ducommun Incorporated | Nauticus Robotics vs. Innovative Solutions and |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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