Correlation Between V2X and Nauticus Robotics

Can any of the company-specific risk be diversified away by investing in both V2X and Nauticus Robotics 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 V2X and Nauticus Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between V2X Inc and Nauticus Robotics, you can compare the effects of market volatilities on V2X and Nauticus Robotics 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 V2X with a short position of Nauticus Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2X and Nauticus Robotics.

Diversification Opportunities for V2X and Nauticus Robotics

0.32

Correlation Coefficient

V2X  Nauticus Robotics

Weak diversification

The 3 months correlation between V2X and Nauticus is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding V2X Inc and Nauticus Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nauticus Robotics and V2X 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 V2X Inc are associated (or correlated) with Nauticus Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nauticus Robotics has no effect on the direction of V2X i.e., V2X and Nauticus Robotics go up and down completely randomly.

Pair Corralation between V2X and Nauticus Robotics

Considering the 90-day investment horizon V2X Inc is expected to under-perform the Nauticus Robotics. But the stock apears to be less risky and, when comparing its historical volatility, V2X Inc is 2.69 times less risky than Nauticus Robotics. The stock trades about -0.02 of its potential returns per unit of risk. The Nauticus Robotics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Nauticus Robotics on May 4, 2025 and sell it today you would lose (8.00) from holding Nauticus Robotics or give up 8.0% of portfolio value over 90 days.

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

V2X Inc  vs.  Nauticus Robotics

V2X Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days V2X Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, V2X is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Nauticus Robotics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nauticus Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nauticus Robotics is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with V2X and Nauticus Robotics

The main advantage of trading using opposite V2X and Nauticus Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2X position performs unexpectedly, Nauticus Robotics 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 Nauticus Robotics will offset losses from the drop in Nauticus Robotics' long position.

The idea behind V2X Inc and Nauticus Robotics 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.