Correlation Between Knightscope and Stardust Power

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

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

Diversification Opportunities for Knightscope and Stardust Power

0.07

Correlation Coefficient

Knightscope  Stardust Power

Significant diversification

The 3 months correlation between Knightscope and Stardust is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Stardust Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stardust Power and Knightscope 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 Knightscope are associated (or correlated) with Stardust Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stardust Power has no effect on the direction of Knightscope i.e., Knightscope and Stardust Power go up and down completely randomly.

Pair Corralation between Knightscope and Stardust Power

Given the investment horizon of 90 days Knightscope is expected to generate 0.81 times more return on investment than Stardust Power. However, Knightscope is 1.23 times less risky than Stardust Power. It trades about -0.06 of its potential returns per unit of risk. Stardust Power is currently generating about -0.11 per unit of risk. If you would invest  580.00  in Knightscope on August 22, 2025 and sell it today you would lose (65.00) from holding Knightscope or give up 11.21% of portfolio value over 90 days.

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

Knightscope  vs.  Stardust Power

Knightscope

Risk-Adjusted Performance

Weakest

Over the last 90 days Knightscope has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Knightscope is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Stardust Power

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stardust Power are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stardust Power unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Knightscope and Stardust Power

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

The idea behind Knightscope and Stardust Power 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.