Correlation Between Aperture Health and KLA Tencor
Can any of the company-specific risk be diversified away by investing in both Aperture Health and KLA Tencor 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 Aperture Health and KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aperture Health and KLA Tencor, you can compare the effects of market volatilities on Aperture Health and KLA Tencor 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 Aperture Health with a short position of KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aperture Health and KLA Tencor.
Diversification Opportunities for Aperture Health and KLA Tencor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aperture and KLA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aperture Health and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor and Aperture Health 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 Aperture Health are associated (or correlated) with KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Aperture Health i.e., Aperture Health and KLA Tencor go up and down completely randomly.
Pair Corralation between Aperture Health and KLA Tencor
If you would invest 73,938 in KLA Tencor on November 2, 2024 and sell it today you would earn a total of 305.00 from holding KLA Tencor or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.26% |
| Values | Daily Returns |
Aperture Health vs. KLA Tencor
Performance |
| Timeline |
| Aperture Health |
| KLA Tencor |
Aperture Health and KLA Tencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aperture Health and KLA Tencor
The main advantage of trading using opposite Aperture Health and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aperture Health position performs unexpectedly, KLA Tencor 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 KLA Tencor will offset losses from the drop in KLA Tencor's long position.| Aperture Health vs. Martin Marietta Materials | Aperture Health vs. CRH PLC ADR | Aperture Health vs. Eagle Materials | Aperture Health vs. Summit Materials |
| KLA Tencor vs. Diodes Incorporated | KLA Tencor vs. Daqo New Energy | KLA Tencor vs. Micron Technology | KLA Tencor vs. MagnaChip Semiconductor |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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