Correlation Between KLA Tencor and Ito En
Can any of the company-specific risk be diversified away by investing in both KLA Tencor and Ito En 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 KLA Tencor and Ito En into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KLA Tencor and Ito En, you can compare the effects of market volatilities on KLA Tencor and Ito En 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 KLA Tencor with a short position of Ito En. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLA Tencor and Ito En.
Diversification Opportunities for KLA Tencor and Ito En
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KLA and Ito is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KLA Tencor and Ito En in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ito En and KLA Tencor 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 KLA Tencor are associated (or correlated) with Ito En. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ito En has no effect on the direction of KLA Tencor i.e., KLA Tencor and Ito En go up and down completely randomly.
Pair Corralation between KLA Tencor and Ito En
If you would invest 36,300 in KLA Tencor on December 4, 2024 and sell it today you would earn a total of 33,600 from holding KLA Tencor or generate 92.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KLA Tencor vs. Ito En
Performance |
| Timeline |
| KLA Tencor |
| Ito En |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KLA Tencor and Ito En Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLA Tencor and Ito En
The main advantage of trading using opposite KLA Tencor and Ito En positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLA Tencor position performs unexpectedly, Ito En 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 Ito En will offset losses from the drop in Ito En's long position.| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
| Ito En vs. Hurco Companies | Ito En vs. ServiceNow | Ito En vs. Sapiens International | Ito En vs. Infosys Ltd ADR |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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