Correlation Between Nauticus Robotics and Boeing

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

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

Diversification Opportunities for Nauticus Robotics and Boeing

-0.25

Correlation Coefficient

Nauticus Robotics  Boeing

Very good diversification

The 3 months correlation between Nauticus and Boeing is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nauticus Robotics and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and Nauticus 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 Nauticus Robotics are associated (or correlated) with Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of Nauticus Robotics i.e., Nauticus Robotics and Boeing go up and down completely randomly.

Pair Corralation between Nauticus Robotics and Boeing

Given the investment horizon of 90 days Nauticus Robotics is expected to under-perform the Boeing. In addition to that, Nauticus Robotics is 4.36 times more volatile than The Boeing. It trades about -0.07 of its total potential returns per unit of risk. The Boeing is currently generating about 0.54 per unit of volatility. If you would invest  14,929  in The Boeing on September 23, 2024 and sell it today you would earn a total of  2,806  from holding The Boeing or generate 18.8% return on investment over 90 days.

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

Nauticus Robotics  vs.  The Boeing

Nauticus Robotics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nauticus Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Boeing

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Boeing are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Boeing sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nauticus Robotics and Boeing

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

The idea behind Nauticus Robotics and The Boeing 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.