Correlation Between DXC Technology and KB Home
Can any of the company-specific risk be diversified away by investing in both DXC Technology and KB Home 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 DXC Technology and KB Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology and KB Home, you can compare the effects of market volatilities on DXC Technology and KB Home 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 DXC Technology with a short position of KB Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and KB Home.
Diversification Opportunities for DXC Technology and KB Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and KBH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology and KB Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Home and DXC Technology 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 DXC Technology are associated (or correlated) with KB Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Home has no effect on the direction of DXC Technology i.e., DXC Technology and KB Home go up and down completely randomly.
Pair Corralation between DXC Technology and KB Home
If you would invest 135,985 in KB Home on November 2, 2024 and sell it today you would earn a total of 15.00 from holding KB Home or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology vs. KB Home
Performance |
| Timeline |
| DXC Technology |
| KB Home |
DXC Technology and KB Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and KB Home
The main advantage of trading using opposite DXC Technology and KB Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, KB Home 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 KB Home will offset losses from the drop in KB Home's long position.| DXC Technology vs. Samsung Electronics Co | DXC Technology vs. Applied Materials | DXC Technology vs. United Airlines Holdings | DXC Technology vs. Monster Beverage Corp |
| KB Home vs. Verizon Communications | KB Home vs. Grupo Hotelero Santa | KB Home vs. Capital One Financial | KB Home vs. Costco Wholesale |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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