Correlation Between Nauticus Robotics and Chardan NexTech

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

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

Diversification Opportunities for Nauticus Robotics and Chardan NexTech

0.49

Correlation Coefficient

Nauticus Robotics  Chardan NexTech

Very weak diversification

The 3 months correlation between Nauticus and Chardan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nauticus Robotics and Chardan NexTech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chardan NexTech Acqu and Nauticus Robotics 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 Nauticus Robotics are associated (or correlated) with Chardan NexTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chardan NexTech Acqu has no effect on the direction of Nauticus Robotics i.e., Nauticus Robotics and Chardan NexTech go up and down completely randomly.

Pair Corralation between Nauticus Robotics and Chardan NexTech

Assuming the 90 days horizon Nauticus Robotics is expected to under-perform the Chardan NexTech. In addition to that, Nauticus Robotics is 1.05 times more volatile than Chardan NexTech Acquisition. It trades about -0.04 of its total potential returns per unit of risk. Chardan NexTech Acquisition is currently generating about -0.03 per unit of volatility. If you would invest  503.00  in Chardan NexTech Acquisition on September 2, 2024 and sell it today you would lose (113.00) from holding Chardan NexTech Acquisition or give up 22.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Nauticus Robotics  vs.  Chardan NexTech Acquisition

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 inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Chardan NexTech Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chardan NexTech Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Nauticus Robotics and Chardan NexTech

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

The idea behind Nauticus Robotics and Chardan NexTech Acquisition 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.