Correlation Between SaverOne 2014 and Kraken Robotics

Can any of the company-specific risk be diversified away by investing in both SaverOne 2014 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 SaverOne 2014 and Kraken Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SaverOne 2014 Ltd and Kraken Robotics, you can compare the effects of market volatilities on SaverOne 2014 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 SaverOne 2014 with a short position of Kraken Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaverOne 2014 and Kraken Robotics.

Diversification Opportunities for SaverOne 2014 and Kraken Robotics

0.54

Correlation Coefficient

SaverOne 2014  Kraken Robotics

Very weak diversification

The 3 months correlation between SaverOne and Kraken is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SaverOne 2014 Ltd and Kraken Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Robotics and SaverOne 2014 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 SaverOne 2014 Ltd 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 SaverOne 2014 i.e., SaverOne 2014 and Kraken Robotics go up and down completely randomly.

Pair Corralation between SaverOne 2014 and Kraken Robotics

Given the investment horizon of 90 days SaverOne 2014 Ltd is expected to under-perform the Kraken Robotics. In addition to that, SaverOne 2014 is 1.94 times more volatile than Kraken Robotics. It trades about -0.28 of its total potential returns per unit of risk. Kraken Robotics is currently generating about 0.0 per unit of volatility. 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	Weak
Accuracy	100.0%
Values	Daily Returns

SaverOne 2014 Ltd  vs.  Kraken Robotics

SaverOne 2014

Risk-Adjusted Performance

Very Weak

Over the last 90 days SaverOne 2014 Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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.

Pair Trading with SaverOne 2014 and Kraken Robotics

The main advantage of trading using opposite SaverOne 2014 and Kraken Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaverOne 2014 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 SaverOne 2014 Ltd 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.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.