Correlation Between Nanalysis Scientific and Kraken Robotics

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

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

Diversification Opportunities for Nanalysis Scientific and Kraken Robotics

0.16

Correlation Coefficient

Nanalysis Scientific  Kraken Robotics

Average diversification

The 3 months correlation between Nanalysis and Kraken is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nanalysis Scientific Corp and Kraken Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Robotics and Nanalysis Scientific 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 Nanalysis Scientific Corp are associated (or correlated) with Kraken Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Robotics has no effect on the direction of Nanalysis Scientific i.e., Nanalysis Scientific and Kraken Robotics go up and down completely randomly.

Pair Corralation between Nanalysis Scientific and Kraken Robotics

Assuming the 90 days horizon Nanalysis Scientific Corp is expected to under-perform the Kraken Robotics. But the otc stock apears to be less risky and, when comparing its historical volatility, Nanalysis Scientific Corp is 1.28 times less risky than Kraken Robotics. The otc stock trades about -0.01 of its potential returns per unit of risk. The Kraken Robotics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  183.00  in Kraken Robotics on December 30, 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	Insignificant
Accuracy	96.88%
Values	Daily Returns

Nanalysis Scientific Corp  vs.  Kraken Robotics

Nanalysis Scientific Corp

Risk-Adjusted Performance

Very Weak

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

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Nanalysis Scientific and Kraken Robotics

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

The idea behind Nanalysis Scientific Corp and Kraken 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.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.