Correlation Between National Presto and Nauticus Robotics

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

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

Diversification Opportunities for National Presto and Nauticus Robotics

-0.52

Correlation Coefficient

National Presto  Nauticus Robotics

Excellent diversification

The 3 months correlation between National and Nauticus is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding National Presto Industries and Nauticus Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nauticus Robotics and National Presto 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 National Presto Industries are associated (or correlated) with Nauticus Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nauticus Robotics has no effect on the direction of National Presto i.e., National Presto and Nauticus Robotics go up and down completely randomly.

Pair Corralation between National Presto and Nauticus Robotics

Considering the 90-day investment horizon National Presto Industries is expected to generate 0.2 times more return on investment than Nauticus Robotics. However, National Presto Industries is 5.04 times less risky than Nauticus Robotics. It trades about 0.66 of its potential returns per unit of risk. Nauticus Robotics is currently generating about 0.09 per unit of risk. If you would invest  7,565  in National Presto Industries on September 18, 2024 and sell it today you would earn a total of  1,735  from holding National Presto Industries or generate 22.93% return on investment over 90 days.

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

National Presto Industries  vs.  Nauticus Robotics

National Presto Indu

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in National Presto Industries are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, National Presto disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 unsteady 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.

Pair Trading with National Presto and Nauticus Robotics

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

The idea behind National Presto Industries and Nauticus Robotics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.