Correlation Between MAVEN WIRELESS and Keysight Technologies
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and Keysight Technologies 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 MAVEN WIRELESS and Keysight Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and Keysight Technologies, you can compare the effects of market volatilities on MAVEN WIRELESS and Keysight Technologies 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 MAVEN WIRELESS with a short position of Keysight Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and Keysight Technologies.
Diversification Opportunities for MAVEN WIRELESS and Keysight Technologies
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MAVEN and Keysight is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and Keysight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keysight Technologies and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with Keysight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keysight Technologies has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and Keysight Technologies go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and Keysight Technologies
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the Keysight Technologies. In addition to that, MAVEN WIRELESS is 1.48 times more volatile than Keysight Technologies. It trades about -0.02 of its total potential returns per unit of risk. Keysight Technologies is currently generating about 0.02 per unit of volatility. If you would invest 15,248 in Keysight Technologies on September 12, 2024 and sell it today you would earn a total of 1,246 from holding Keysight Technologies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. Keysight Technologies
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| Keysight Technologies |
MAVEN WIRELESS and Keysight Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and Keysight Technologies
The main advantage of trading using opposite MAVEN WIRELESS and Keysight Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, Keysight Technologies 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 Keysight Technologies will offset losses from the drop in Keysight Technologies' long position.| MAVEN WIRELESS vs. Superior Plus Corp | MAVEN WIRELESS vs. SIVERS SEMICONDUCTORS AB | MAVEN WIRELESS vs. Norsk Hydro ASA | MAVEN WIRELESS vs. Reliance Steel Aluminum |
| Keysight Technologies vs. HEXAGON AB ADR1 | Keysight Technologies vs. Superior Plus Corp | Keysight Technologies vs. SIVERS SEMICONDUCTORS AB | Keysight Technologies 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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