Correlation Between Keysight Technologies and Spectris Plc
Can any of the company-specific risk be diversified away by investing in both Keysight Technologies and Spectris Plc 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 Keysight Technologies and Spectris Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keysight Technologies and Spectris plc, you can compare the effects of market volatilities on Keysight Technologies and Spectris Plc 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 Keysight Technologies with a short position of Spectris Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keysight Technologies and Spectris Plc.
Diversification Opportunities for Keysight Technologies and Spectris Plc
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Keysight and Spectris is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Keysight Technologies and Spectris plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectris plc and Keysight Technologies 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 Keysight Technologies are associated (or correlated) with Spectris Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectris plc has no effect on the direction of Keysight Technologies i.e., Keysight Technologies and Spectris Plc go up and down completely randomly.
Pair Corralation between Keysight Technologies and Spectris Plc
Given the investment horizon of 90 days Keysight Technologies is expected to generate 0.79 times more return on investment than Spectris Plc. However, Keysight Technologies is 1.26 times less risky than Spectris Plc. It trades about 0.19 of its potential returns per unit of risk. Spectris plc is currently generating about -0.08 per unit of risk. If you would invest 15,573 in Keysight Technologies on August 28, 2024 and sell it today you would earn a total of 1,595 from holding Keysight Technologies or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keysight Technologies vs. Spectris plc
Performance |
| Timeline |
| Keysight Technologies |
| Spectris plc |
Keysight Technologies and Spectris Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keysight Technologies and Spectris Plc
The main advantage of trading using opposite Keysight Technologies and Spectris Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keysight Technologies position performs unexpectedly, Spectris Plc 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 Spectris Plc will offset losses from the drop in Spectris Plc's long position.| Keysight Technologies vs. Vontier Corp | Keysight Technologies vs. Teledyne Technologies Incorporated | Keysight Technologies vs. ESCO Technologies | Keysight Technologies vs. MKS Instruments |
| Spectris Plc vs. Garmin | Spectris Plc vs. Keysight Technologies | Spectris Plc vs. Fortive Corp | Spectris Plc vs. Teledyne Technologies Incorporated |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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