Correlation Between Knightscope and Plymouth Rock

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

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

Diversification Opportunities for Knightscope and Plymouth Rock

0.0

Correlation Coefficient

Knightscope  Plymouth Rock

Pay attention - limited upside

The 3 months correlation between Knightscope and Plymouth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Plymouth Rock Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plymouth Rock Techno and Knightscope 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 Knightscope are associated (or correlated) with Plymouth Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plymouth Rock Techno has no effect on the direction of Knightscope i.e., Knightscope and Plymouth Rock go up and down completely randomly.

Pair Corralation between Knightscope and Plymouth Rock

If you would invest (100.00) in Plymouth Rock Technologies on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Plymouth Rock Technologies or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Knightscope  vs.  Plymouth Rock Technologies

Knightscope

Risk-Adjusted Performance

Very Weak

Over the last 90 days Knightscope has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Plymouth Rock Techno

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Knightscope and Plymouth Rock

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

The idea behind Knightscope and Plymouth Rock Technologies 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.