Correlation Between Nauticus Robotics and CROWN

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

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

Diversification Opportunities for Nauticus Robotics and CROWN

-0.35

Correlation Coefficient

Nauticus Robotics  CROWN

Very good diversification

The 3 months correlation between Nauticus and CROWN is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nauticus Robotics and CROWN CASTLE INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CROWN CASTLE INTERNA 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 CROWN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CROWN CASTLE INTERNA has no effect on the direction of Nauticus Robotics i.e., Nauticus Robotics and CROWN go up and down completely randomly.

Pair Corralation between Nauticus Robotics and CROWN

Assuming the 90 days horizon Nauticus Robotics is expected to generate 42.73 times more return on investment than CROWN. However, Nauticus Robotics is 42.73 times more volatile than CROWN CASTLE INTERNATIONAL. It trades about 0.04 of its potential returns per unit of risk. CROWN CASTLE INTERNATIONAL is currently generating about -0.01 per unit of risk. If you would invest  20.00  in Nauticus Robotics on September 23, 2024 and sell it today you would lose (18.60) from holding Nauticus Robotics or give up 93.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.76%
Values	Daily Returns

Nauticus Robotics  vs.  CROWN CASTLE INTERNATIONAL

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.

CROWN CASTLE INTERNA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CROWN CASTLE INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for CROWN CASTLE INTERNATIONAL investors.

Pair Trading with Nauticus Robotics and CROWN

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

The idea behind Nauticus Robotics and CROWN CASTLE INTERNATIONAL 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.