Correlation Between Keysight Technologies and HEXAGON AB
Can any of the company-specific risk be diversified away by investing in both Keysight Technologies and HEXAGON AB 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 Keysight Technologies and HEXAGON AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keysight Technologies and HEXAGON AB ADR1, you can compare the effects of market volatilities on Keysight Technologies and HEXAGON AB 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 Keysight Technologies with a short position of HEXAGON AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keysight Technologies and HEXAGON AB.
Diversification Opportunities for Keysight Technologies and HEXAGON AB
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keysight and HEXAGON is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Keysight Technologies and HEXAGON AB ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXAGON AB ADR1 and Keysight Technologies 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 Keysight Technologies are associated (or correlated) with HEXAGON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXAGON AB ADR1 has no effect on the direction of Keysight Technologies i.e., Keysight Technologies and HEXAGON AB go up and down completely randomly.
Pair Corralation between Keysight Technologies and HEXAGON AB
Assuming the 90 days horizon Keysight Technologies is expected to generate 1.04 times more return on investment than HEXAGON AB. However, Keysight Technologies is 1.04 times more volatile than HEXAGON AB ADR1. It trades about 0.3 of its potential returns per unit of risk. HEXAGON AB ADR1 is currently generating about -0.11 per unit of risk. If you would invest 13,698 in Keysight Technologies on September 2, 2024 and sell it today you would earn a total of 2,432 from holding Keysight Technologies or generate 17.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keysight Technologies vs. HEXAGON AB ADR1
Performance |
| Timeline |
| Keysight Technologies |
| HEXAGON AB ADR1 |
Keysight Technologies and HEXAGON AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keysight Technologies and HEXAGON AB
The main advantage of trading using opposite Keysight Technologies and HEXAGON AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keysight Technologies position performs unexpectedly, HEXAGON AB 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 HEXAGON AB will offset losses from the drop in HEXAGON AB's long position.| Keysight Technologies vs. Superior Plus Corp | Keysight Technologies vs. NMI Holdings | Keysight Technologies vs. Origin Agritech | Keysight Technologies vs. SIVERS SEMICONDUCTORS AB |
| HEXAGON AB vs. Superior Plus Corp | HEXAGON AB vs. NMI Holdings | HEXAGON AB vs. Origin Agritech | HEXAGON AB vs. SIVERS SEMICONDUCTORS AB |
Check out your portfolio center.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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