Correlation Between Fbec Worldwide and Knightscope

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

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

Diversification Opportunities for Fbec Worldwide and Knightscope

-0.35

Correlation Coefficient

Fbec Worldwide  Knightscope

Very good diversification

The 3 months correlation between Fbec and Knightscope is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fbec Worldwide and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and Fbec Worldwide 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 Fbec Worldwide are associated (or correlated) with Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of Fbec Worldwide i.e., Fbec Worldwide and Knightscope go up and down completely randomly.

Pair Corralation between Fbec Worldwide and Knightscope

Given the investment horizon of 90 days Fbec Worldwide is expected to under-perform the Knightscope. In addition to that, Fbec Worldwide is 1.75 times more volatile than Knightscope. It trades about -0.07 of its total potential returns per unit of risk. Knightscope is currently generating about 0.07 per unit of volatility. If you would invest  481.00  in Knightscope on May 4, 2025 and sell it today you would earn a total of  98.00  from holding Knightscope or generate 20.37% return on investment over 90 days.

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

Fbec Worldwide  vs.  Knightscope

Fbec Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fbec Worldwide 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Knightscope

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Knightscope are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting fundamental indicators, Knightscope reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fbec Worldwide and Knightscope

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

The idea behind Fbec Worldwide and Knightscope 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.