Correlation Between Entegris and KVH Industries
Can any of the company-specific risk be diversified away by investing in both Entegris 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 Entegris and KVH Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and KVH Industries, you can compare the effects of market volatilities on Entegris 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 Entegris with a short position of KVH Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and KVH Industries.
Diversification Opportunities for Entegris and KVH Industries
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Entegris and KVH is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and KVH Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KVH Industries and Entegris 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 Entegris 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 Entegris i.e., Entegris and KVH Industries go up and down completely randomly.
Pair Corralation between Entegris and KVH Industries
Given the investment horizon of 90 days Entegris is expected to generate 2.93 times less return on investment than KVH Industries. In addition to that, Entegris is 1.1 times more volatile than KVH Industries. It trades about 0.17 of its total potential returns per unit of risk. KVH Industries is currently generating about 0.53 per unit of volatility. If you would invest 457.00 in KVH Industries on September 4, 2024 and sell it today you would earn a total of 118.00 from holding KVH Industries or generate 25.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. KVH Industries
Performance |
| Timeline |
| Entegris |
| KVH Industries |
Entegris and KVH Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and KVH Industries
The main advantage of trading using opposite Entegris and KVH Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris 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.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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