Correlation Between CommScope Holding and KVH Industries
Can any of the company-specific risk be diversified away by investing in both CommScope Holding 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 CommScope Holding and KVH Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CommScope Holding Co and KVH Industries, you can compare the effects of market volatilities on CommScope Holding 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 CommScope Holding with a short position of KVH Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of CommScope Holding and KVH Industries.
Diversification Opportunities for CommScope Holding and KVH Industries
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between CommScope and KVH is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CommScope Holding Co and KVH Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KVH Industries and CommScope Holding 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 CommScope Holding Co 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 CommScope Holding i.e., CommScope Holding and KVH Industries go up and down completely randomly.
Pair Corralation between CommScope Holding and KVH Industries
Given the investment horizon of 90 days CommScope Holding Co is expected to generate 2.27 times more return on investment than KVH Industries. However, CommScope Holding is 2.27 times more volatile than KVH Industries. It trades about 0.02 of its potential returns per unit of risk. KVH Industries is currently generating about -0.03 per unit of risk. If you would invest 804.00 in CommScope Holding Co on August 31, 2024 and sell it today you would lose (296.00) from holding CommScope Holding Co or give up 36.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CommScope Holding Co vs. KVH Industries
Performance |
| Timeline |
| CommScope Holding |
| KVH Industries |
CommScope Holding and KVH Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CommScope Holding and KVH Industries
The main advantage of trading using opposite CommScope Holding and KVH Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CommScope Holding 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.| CommScope Holding vs. Harmonic | CommScope Holding vs. NETGEAR | CommScope Holding vs. Comtech Telecommunications Corp | CommScope Holding vs. ADTRAN Inc |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |