Correlation Between Core Natural and KVH Industries
Can any of the company-specific risk be diversified away by investing in both Core Natural 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 Core Natural and KVH Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Natural Resources, and KVH Industries, you can compare the effects of market volatilities on Core Natural 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 Core Natural with a short position of KVH Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Natural and KVH Industries.
Diversification Opportunities for Core Natural and KVH Industries
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Core and KVH is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Core Natural Resources, and KVH Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KVH Industries and Core Natural 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 Core Natural Resources, 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 Core Natural i.e., Core Natural and KVH Industries go up and down completely randomly.
Pair Corralation between Core Natural and KVH Industries
Considering the 90-day investment horizon Core Natural Resources, is expected to under-perform the KVH Industries. In addition to that, Core Natural is 1.34 times more volatile than KVH Industries. It trades about -0.06 of its total potential returns per unit of risk. KVH Industries is currently generating about 0.23 per unit of volatility. If you would invest 465.00 in KVH Industries on October 25, 2024 and sell it today you would earn a total of 139.00 from holding KVH Industries or generate 29.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Natural Resources, vs. KVH Industries
Performance |
| Timeline |
| Core Natural Resources, |
| KVH Industries |
Core Natural and KVH Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Natural and KVH Industries
The main advantage of trading using opposite Core Natural and KVH Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Natural 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.| Core Natural vs. KVH Industries | Core Natural vs. Dave Busters Entertainment | Core Natural vs. Autohome | Core Natural vs. Taylor Morn Home |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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