Correlation Between Iteris and Knowles Cor
Can any of the company-specific risk be diversified away by investing in both Iteris and Knowles Cor 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 Iteris and Knowles Cor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iteris Inc and Knowles Cor, you can compare the effects of market volatilities on Iteris and Knowles Cor 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 Iteris with a short position of Knowles Cor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iteris and Knowles Cor.
Diversification Opportunities for Iteris and Knowles Cor
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Iteris and Knowles is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Iteris Inc and Knowles Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knowles Cor and Iteris 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 Iteris Inc are associated (or correlated) with Knowles Cor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knowles Cor has no effect on the direction of Iteris i.e., Iteris and Knowles Cor go up and down completely randomly.
Pair Corralation between Iteris and Knowles Cor
Considering the 90-day investment horizon Iteris Inc is expected to generate 2.04 times more return on investment than Knowles Cor. However, Iteris is 2.04 times more volatile than Knowles Cor. It trades about 0.42 of its potential returns per unit of risk. Knowles Cor is currently generating about 0.13 per unit of risk. If you would invest 21,830 in Iteris Inc on August 27, 2024 and sell it today you would earn a total of 4,819 from holding Iteris Inc or generate 22.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Iteris Inc vs. Knowles Cor
Performance |
| Timeline |
| Iteris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Knowles Cor |
Iteris and Knowles Cor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iteris and Knowles Cor
The main advantage of trading using opposite Iteris and Knowles Cor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteris position performs unexpectedly, Knowles Cor 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 Knowles Cor will offset losses from the drop in Knowles Cor's long position.| Iteris vs. Optical Cable | Iteris vs. KVH Industries | Iteris vs. Knowles Cor | Iteris vs. Comtech Telecommunications Corp |
| Knowles Cor vs. Mynaric AG ADR | Knowles Cor vs. Comtech Telecommunications Corp | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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