Correlation Between Quanergy Systems and Kraken Robotics

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

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

Diversification Opportunities for Quanergy Systems and Kraken Robotics

0.0

Correlation Coefficient

Quanergy Systems  Kraken Robotics

Pay attention - limited upside

The 3 months correlation between Quanergy and Kraken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quanergy Systems and Kraken Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Robotics and Quanergy Systems 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 Quanergy Systems 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 Quanergy Systems i.e., Quanergy Systems and Kraken Robotics go up and down completely randomly.

Pair Corralation between Quanergy Systems and Kraken Robotics

If you would invest (100.00) in Quanergy Systems on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Quanergy Systems 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

Quanergy Systems  vs.  Kraken Robotics

Quanergy Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quanergy Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Quanergy Systems is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

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 Quanergy Systems and Kraken Robotics

The main advantage of trading using opposite Quanergy Systems and Kraken Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanergy Systems 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 Quanergy Systems 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.