Correlation Between Corsair Gaming and Keyence
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Keyence 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 Corsair Gaming and Keyence into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Keyence, you can compare the effects of market volatilities on Corsair Gaming and Keyence 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 Corsair Gaming with a short position of Keyence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Keyence.
Diversification Opportunities for Corsair Gaming and Keyence
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corsair and Keyence is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Keyence go up and down completely randomly.
Pair Corralation between Corsair Gaming and Keyence
Assuming the 90 days horizon Corsair Gaming is expected to generate 2.6 times more return on investment than Keyence. However, Corsair Gaming is 2.6 times more volatile than Keyence. It trades about 0.28 of its potential returns per unit of risk. Keyence is currently generating about 0.0 per unit of risk. If you would invest 611.00 in Corsair Gaming on September 12, 2024 and sell it today you would earn a total of 159.00 from holding Corsair Gaming or generate 26.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Keyence
Performance |
| Timeline |
| Corsair Gaming |
| Keyence |
Corsair Gaming and Keyence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Keyence
The main advantage of trading using opposite Corsair Gaming and Keyence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Keyence 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 Keyence will offset losses from the drop in Keyence's long position.| Corsair Gaming vs. Summit Materials | Corsair Gaming vs. Materialise NV | Corsair Gaming vs. LION ONE METALS | Corsair Gaming vs. MCEWEN MINING INC |
| Keyence vs. HEXAGON AB ADR1 | Keyence vs. Superior Plus Corp | Keyence vs. SIVERS SEMICONDUCTORS AB | Keyence vs. NorAm Drilling AS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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