Correlation Between Intevac and Knowles Cor
Can any of the company-specific risk be diversified away by investing in both Intevac 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 Intevac and Knowles Cor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intevac and Knowles Cor, you can compare the effects of market volatilities on Intevac 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 Intevac with a short position of Knowles Cor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intevac and Knowles Cor.
Diversification Opportunities for Intevac and Knowles Cor
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intevac and Knowles is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and Knowles Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knowles Cor and Intevac 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 Intevac 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 Intevac i.e., Intevac and Knowles Cor go up and down completely randomly.
Pair Corralation between Intevac and Knowles Cor
Given the investment horizon of 90 days Intevac is expected to under-perform the Knowles Cor. In addition to that, Intevac is 2.3 times more volatile than Knowles Cor. It trades about -0.14 of its total potential returns per unit of risk. Knowles Cor is currently generating about 0.2 per unit of volatility. If you would invest 1,751 in Knowles Cor on August 31, 2024 and sell it today you would earn a total of 173.00 from holding Knowles Cor or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intevac vs. Knowles Cor
Performance |
| Timeline |
| Intevac |
| Knowles Cor |
Intevac and Knowles Cor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intevac and Knowles Cor
The main advantage of trading using opposite Intevac and Knowles Cor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intevac 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.| Intevac vs. Innovative Solutions and | Intevac vs. Heidrick Struggles International | Intevac vs. ICF International | Intevac vs. PDF Solutions |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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