Correlation Between C3 Metals and Kraken Robotics

Can any of the company-specific risk be diversified away by investing in both C3 Metals and Kraken 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 C3 Metals and Kraken Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C3 Metals and Kraken Robotics, you can compare the effects of market volatilities on C3 Metals and Kraken 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 C3 Metals with a short position of Kraken Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Metals and Kraken Robotics.

Diversification Opportunities for C3 Metals and Kraken Robotics

-0.78

Correlation Coefficient

C3 Metals  Kraken Robotics

Pay attention - limited upside

The 3 months correlation between CCCM and Kraken is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding C3 Metals and Kraken Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Robotics and C3 Metals 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 C3 Metals are associated (or correlated) with Kraken Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Robotics has no effect on the direction of C3 Metals i.e., C3 Metals and Kraken Robotics go up and down completely randomly.

Pair Corralation between C3 Metals and Kraken Robotics

Assuming the 90 days trading horizon C3 Metals is expected to under-perform the Kraken Robotics. In addition to that, C3 Metals is 1.62 times more volatile than Kraken Robotics. It trades about -0.01 of its total potential returns per unit of risk. Kraken Robotics is currently generating about 0.1 per unit of volatility. If you would invest  56.00  in Kraken Robotics on September 19, 2024 and sell it today you would earn a total of  201.00  from holding Kraken Robotics or generate 358.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

C3 Metals  vs.  Kraken Robotics

C3 Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C3 Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Kraken Robotics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Robotics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Kraken Robotics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with C3 Metals and Kraken Robotics

The main advantage of trading using opposite C3 Metals and Kraken Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Metals position performs unexpectedly, Kraken 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 Kraken Robotics will offset losses from the drop in Kraken Robotics' long position.

The idea behind C3 Metals and Kraken 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.