Correlation Between ScanTech and Knightscope

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

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

Diversification Opportunities for ScanTech and Knightscope

-0.22

Correlation Coefficient

ScanTech  Knightscope

Very good diversification

The 3 months correlation between ScanTech and Knightscope is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and ScanTech 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 ScanTech AI Systems 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 ScanTech i.e., ScanTech and Knightscope go up and down completely randomly.

Pair Corralation between ScanTech and Knightscope

Given the investment horizon of 90 days ScanTech AI Systems is expected to under-perform the Knightscope. In addition to that, ScanTech is 1.77 times more volatile than Knightscope. It trades about -0.05 of its total potential returns per unit of risk. Knightscope is currently generating about 0.04 per unit of volatility. If you would invest  589.00  in Knightscope on May 15, 2025 and sell it today you would earn a total of  6.00  from holding Knightscope or generate 1.02% return on investment over 90 days.

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

ScanTech AI Systems  vs.  Knightscope

ScanTech AI Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Knightscope

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Knightscope are ranked lower than 2 (%) 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 ScanTech and Knightscope

The main advantage of trading using opposite ScanTech and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanTech 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 ScanTech AI Systems 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.