Correlation Between KLA Tencor and FEDEX
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By analyzing existing cross correlation between KLA Tencor and FEDEX P 405, you can compare the effects of market volatilities on KLA Tencor and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLA Tencor and FEDEX.
Diversification Opportunities for KLA Tencor and FEDEX
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KLA and FEDEX is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding KLA Tencor and FEDEX P 405 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 405 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 405 has no effect on the direction of KLA Tencor i.e., KLA Tencor and FEDEX go up and down completely randomly.
Pair Corralation between KLA Tencor and FEDEX
Given the investment horizon of 90 days KLA Tencor is expected to generate 3.64 times less return on investment than FEDEX. In addition to that, KLA Tencor is 1.43 times more volatile than FEDEX P 405. It trades about 0.05 of its total potential returns per unit of risk. FEDEX P 405 is currently generating about 0.26 per unit of volatility. If you would invest 7,834 in FEDEX P 405 on September 15, 2024 and sell it today you would earn a total of 570.00 from holding FEDEX P 405 or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLA Tencor vs. FEDEX P 405
Performance |
| Timeline |
| KLA Tencor |
| FEDEX P 405 |
KLA Tencor and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLA Tencor and FEDEX
The main advantage of trading using opposite KLA Tencor and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLA Tencor position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
| FEDEX vs. Kandi Technologies Group | FEDEX vs. Sphere Entertainment Co | FEDEX vs. Amgen Inc | FEDEX vs. Avadel Pharmaceuticals PLC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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