Correlation Between KB Home and DXC Technology
Can any of the company-specific risk be diversified away by investing in both KB Home and DXC Technology 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 KB Home and DXC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Home and DXC Technology, you can compare the effects of market volatilities on KB Home and DXC Technology 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 KB Home with a short position of DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Home and DXC Technology.
Diversification Opportunities for KB Home and DXC Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBH and DXC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KB Home and DXC Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology and KB Home 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 KB Home are associated (or correlated) with DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of KB Home i.e., KB Home and DXC Technology go up and down completely randomly.
Pair Corralation between KB Home and DXC Technology
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 |
KB Home vs. DXC Technology
Performance |
| Timeline |
| KB Home |
| DXC Technology |
KB Home and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Home and DXC Technology
The main advantage of trading using opposite KB Home and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Home position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| KB Home vs. Verizon Communications | KB Home vs. Grupo Hotelero Santa | KB Home vs. Capital One Financial | KB Home vs. Costco Wholesale |
| DXC Technology vs. Samsung Electronics Co | DXC Technology vs. Applied Materials | DXC Technology vs. United Airlines Holdings | DXC Technology vs. Monster Beverage Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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