Correlation Between Kraken Robotics and Lite Access

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

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

Diversification Opportunities for Kraken Robotics and Lite Access

0.0

Correlation Coefficient

Kraken Robotics  Lite Access

Pay attention - limited upside

The 3 months correlation between Kraken and Lite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Robotics and Lite Access Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lite Access Technologies and Kraken 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 Kraken Robotics are associated (or correlated) with Lite Access. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lite Access Technologies has no effect on the direction of Kraken Robotics i.e., Kraken Robotics and Lite Access go up and down completely randomly.

Pair Corralation between Kraken Robotics and Lite Access

If you would invest  170.00  in Kraken Robotics on September 14, 2024 and sell it today you would earn a total of  108.00  from holding Kraken Robotics or generate 63.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kraken Robotics  vs.  Lite Access Technologies

Kraken Robotics

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Robotics are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kraken Robotics showed solid returns over the last few months and may actually be approaching a breakup point.

Lite Access Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lite Access Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Lite Access is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kraken Robotics and Lite Access

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

The idea behind Kraken Robotics and Lite Access Technologies 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.