Correlation Between Kronos Advanced and Current Water

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

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

Diversification Opportunities for Kronos Advanced and Current Water

0.06

Correlation Coefficient

Kronos Advanced  Current Water

Significant diversification

The 3 months correlation between Kronos and Current is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Advanced Technologies and Current Water Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Current Water Techno and Kronos Advanced 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 Kronos Advanced Technologies are associated (or correlated) with Current Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Current Water Techno has no effect on the direction of Kronos Advanced i.e., Kronos Advanced and Current Water go up and down completely randomly.

Pair Corralation between Kronos Advanced and Current Water

Given the investment horizon of 90 days Kronos Advanced Technologies is expected to generate 33.27 times more return on investment than Current Water. However, Kronos Advanced is 33.27 times more volatile than Current Water Technologies. It trades about 0.05 of its potential returns per unit of risk. Current Water Technologies is currently generating about 0.13 per unit of risk. If you would invest  0.40  in Kronos Advanced Technologies on July 31, 2025 and sell it today you would lose (0.02) from holding Kronos Advanced Technologies or give up 5.0% of portfolio value over 90 days.

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

Kronos Advanced Technologies  vs.  Current Water Technologies

Kronos Advanced Tech

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Kronos Advanced Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Kronos Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Current Water Techno

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Current Water Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Current Water is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kronos Advanced and Current Water

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

The idea behind Kronos Advanced Technologies and Current Water 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.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.