Correlation Between KYE Systems and Holy Stone
Can any of the company-specific risk be diversified away by investing in both KYE Systems and Holy Stone 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 KYE Systems and Holy Stone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KYE Systems Corp and Holy Stone Enterprise, you can compare the effects of market volatilities on KYE Systems and Holy Stone 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 KYE Systems with a short position of Holy Stone. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYE Systems and Holy Stone.
Diversification Opportunities for KYE Systems and Holy Stone
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KYE and Holy is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding KYE Systems Corp and Holy Stone Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holy Stone Enterprise and KYE Systems 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 KYE Systems Corp are associated (or correlated) with Holy Stone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holy Stone Enterprise has no effect on the direction of KYE Systems i.e., KYE Systems and Holy Stone go up and down completely randomly.
Pair Corralation between KYE Systems and Holy Stone
Assuming the 90 days trading horizon KYE Systems Corp is expected to generate 5.41 times more return on investment than Holy Stone. However, KYE Systems is 5.41 times more volatile than Holy Stone Enterprise. It trades about 0.16 of its potential returns per unit of risk. Holy Stone Enterprise is currently generating about -0.23 per unit of risk. If you would invest 4,075 in KYE Systems Corp on October 9, 2024 and sell it today you would earn a total of 535.00 from holding KYE Systems Corp or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KYE Systems Corp vs. Holy Stone Enterprise
Performance |
| Timeline |
| KYE Systems Corp |
| Holy Stone Enterprise |
KYE Systems and Holy Stone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYE Systems and Holy Stone
The main advantage of trading using opposite KYE Systems and Holy Stone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYE Systems position performs unexpectedly, Holy Stone 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 Holy Stone will offset losses from the drop in Holy Stone's long position.| KYE Systems vs. Holy Stone Enterprise | KYE Systems vs. Walsin Technology Corp | KYE Systems vs. Yageo Corp | KYE Systems vs. HannStar Board Corp |
| Holy Stone vs. Walsin Technology Corp | Holy Stone vs. Yageo Corp | Holy Stone vs. Tripod Technology Corp | Holy Stone vs. Asia Optical Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |