Correlation Between Mind Technology and Kraken Robotics

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

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

Diversification Opportunities for Mind Technology and Kraken Robotics

0.57

Correlation Coefficient

Mind Technology  Kraken Robotics

Very weak diversification

The 3 months correlation between Mind and Kraken is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology and Kraken Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Robotics and Mind Technology 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 Mind Technology 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 Mind Technology i.e., Mind Technology and Kraken Robotics go up and down completely randomly.

Pair Corralation between Mind Technology and Kraken Robotics

Given the investment horizon of 90 days Mind Technology is expected to generate 1.46 times more return on investment than Kraken Robotics. However, Mind Technology is 1.46 times more volatile than Kraken Robotics. It trades about 0.18 of its potential returns per unit of risk. Kraken Robotics is currently generating about 0.15 per unit of risk. If you would invest  405.00  in Mind Technology on September 22, 2024 and sell it today you would earn a total of  355.00  from holding Mind Technology or generate 87.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Mind Technology  vs.  Kraken Robotics

Mind Technology

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mind Technology are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Mind Technology exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kraken Robotics

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Robotics are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Kraken Robotics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mind Technology and Kraken Robotics

The main advantage of trading using opposite Mind Technology and Kraken Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mind Technology 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 Mind Technology 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 Transaction History module to view history of all your transactions and understand their impact on performance.