Correlation Between Nauticus Robotics and National Presto

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

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

Diversification Opportunities for Nauticus Robotics and National Presto

-0.11

Correlation Coefficient

Nauticus Robotics  National Presto

Good diversification

The 3 months correlation between Nauticus and National is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nauticus Robotics and National Presto Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Presto Indu 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 National Presto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Presto Indu has no effect on the direction of Nauticus Robotics i.e., Nauticus Robotics and National Presto go up and down completely randomly.

Pair Corralation between Nauticus Robotics and National Presto

Assuming the 90 days horizon Nauticus Robotics is expected to under-perform the National Presto. In addition to that, Nauticus Robotics is 4.52 times more volatile than National Presto Industries. It trades about -0.04 of its total potential returns per unit of risk. National Presto Industries is currently generating about 0.03 per unit of volatility. If you would invest  7,667  in National Presto Industries on August 31, 2024 and sell it today you would earn a total of  191.00  from holding National Presto Industries or generate 2.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Nauticus Robotics  vs.  National Presto Industries

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 fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

National Presto Indu

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in National Presto Industries are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, National Presto is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Nauticus Robotics and National Presto

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

The idea behind Nauticus Robotics and National Presto Industries 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.