Correlation Between Nauticus Robotics and Peer To

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

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

Diversification Opportunities for Nauticus Robotics and Peer To

-0.4

Correlation Coefficient

Nauticus Robotics  Peer To

Very good diversification

The 3 months correlation between Nauticus and Peer is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nauticus Robotics and Peer To Peer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peer To Peer 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 Peer To. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peer To Peer has no effect on the direction of Nauticus Robotics i.e., Nauticus Robotics and Peer To go up and down completely randomly.

Pair Corralation between Nauticus Robotics and Peer To

Assuming the 90 days horizon Nauticus Robotics is expected to generate 0.75 times more return on investment than Peer To. However, Nauticus Robotics is 1.34 times less risky than Peer To. It trades about 0.13 of its potential returns per unit of risk. Peer To Peer is currently generating about -0.05 per unit of risk. If you would invest  1.16  in Nauticus Robotics on September 23, 2024 and sell it today you would earn a total of  0.24  from holding Nauticus Robotics or generate 20.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Nauticus Robotics  vs.  Peer To Peer

Nauticus Robotics

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nauticus Robotics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Nauticus Robotics showed solid returns over the last few months and may actually be approaching a breakup point.

Peer To Peer

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Peer To Peer are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Peer To reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nauticus Robotics and Peer To

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

The idea behind Nauticus Robotics and Peer To Peer 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.