Correlation Between KLA Tencor and SmartKem, Common
Can any of the company-specific risk be diversified away by investing in both KLA Tencor and SmartKem, Common 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 SmartKem, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KLA Tencor and SmartKem, Common Stock, you can compare the effects of market volatilities on KLA Tencor and SmartKem, Common 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 SmartKem, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLA Tencor and SmartKem, Common.
Diversification Opportunities for KLA Tencor and SmartKem, Common
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KLA and SmartKem, is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding KLA Tencor and SmartKem, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartKem, Common Stock 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 SmartKem, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartKem, Common Stock has no effect on the direction of KLA Tencor i.e., KLA Tencor and SmartKem, Common go up and down completely randomly.
Pair Corralation between KLA Tencor and SmartKem, Common
Given the investment horizon of 90 days KLA Tencor is expected to generate 7.93 times less return on investment than SmartKem, Common. But when comparing it to its historical volatility, KLA Tencor is 8.22 times less risky than SmartKem, Common. It trades about 0.05 of its potential returns per unit of risk. SmartKem, Common Stock is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,100 in SmartKem, Common Stock on August 31, 2024 and sell it today you would lose (1,404) from holding SmartKem, Common Stock or give up 66.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.87% |
| Values | Daily Returns |
KLA Tencor vs. SmartKem, Common Stock
Performance |
| Timeline |
| KLA Tencor |
| SmartKem, Common Stock |
KLA Tencor and SmartKem, Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLA Tencor and SmartKem, Common
The main advantage of trading using opposite KLA Tencor and SmartKem, Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLA Tencor position performs unexpectedly, SmartKem, Common 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 SmartKem, Common will offset losses from the drop in SmartKem, Common's long position.| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
| SmartKem, Common vs. Atomera | SmartKem, Common vs. Aehr Test Systems | SmartKem, Common vs. indie Semiconductor | SmartKem, Common vs. KLA Tencor |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |