Correlation Between Canlan Ice and KVH Industries
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and KVH Industries 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 Canlan Ice and KVH Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and KVH Industries, you can compare the effects of market volatilities on Canlan Ice and KVH Industries 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 Canlan Ice with a short position of KVH Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and KVH Industries.
Diversification Opportunities for Canlan Ice and KVH Industries
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and KVH is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and KVH Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KVH Industries and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with KVH Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KVH Industries has no effect on the direction of Canlan Ice i.e., Canlan Ice and KVH Industries go up and down completely randomly.
Pair Corralation between Canlan Ice and KVH Industries
If you would invest 463.00 in KVH Industries on September 1, 2024 and sell it today you would earn a total of 88.00 from holding KVH Industries or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. KVH Industries
Performance |
| Timeline |
| Canlan Ice Sports |
| KVH Industries |
Canlan Ice and KVH Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and KVH Industries
The main advantage of trading using opposite Canlan Ice and KVH Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, KVH Industries 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 KVH Industries will offset losses from the drop in KVH Industries' long position.| Canlan Ice vs. Philip Morris International | Canlan Ice vs. Ambev SA ADR | Canlan Ice vs. Japan Tobacco ADR | Canlan Ice vs. Compania Cervecerias Unidas |
| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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