Correlation Between Kraken Robotics and Energous

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

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

Diversification Opportunities for Kraken Robotics and Energous

0.31

Correlation Coefficient

Kraken Robotics  Energous

Weak diversification

The 3 months correlation between Kraken and Energous is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Robotics and Energous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energous and Kraken 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 Kraken Robotics are associated (or correlated) with Energous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energous has no effect on the direction of Kraken Robotics i.e., Kraken Robotics and Energous go up and down completely randomly.

Pair Corralation between Kraken Robotics and Energous

Assuming the 90 days horizon Kraken Robotics is expected to generate 0.31 times more return on investment than Energous. However, Kraken Robotics is 3.21 times less risky than Energous. It trades about 0.0 of its potential returns per unit of risk. Energous is currently generating about -0.22 per unit of risk. If you would invest  183.00  in Kraken Robotics on December 29, 2024 and sell it today you would lose (9.00) from holding Kraken Robotics or give up 4.92% of portfolio value over 90 days.

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

Kraken Robotics  vs.  Energous

Kraken Robotics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kraken Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Kraken Robotics is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Energous

Risk-Adjusted Performance

Very Weak

Over the last 90 days Energous 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 basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Kraken Robotics and Energous

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

The idea behind Kraken Robotics and Energous 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.