Correlation Between KLA Tencor and Univest Pennsylvania
Can any of the company-specific risk be diversified away by investing in both KLA Tencor and Univest Pennsylvania 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 Univest Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KLA Tencor and Univest Pennsylvania, you can compare the effects of market volatilities on KLA Tencor and Univest Pennsylvania 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 Univest Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLA Tencor and Univest Pennsylvania.
Diversification Opportunities for KLA Tencor and Univest Pennsylvania
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KLA and Univest is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding KLA Tencor and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania 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 Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of KLA Tencor i.e., KLA Tencor and Univest Pennsylvania go up and down completely randomly.
Pair Corralation between KLA Tencor and Univest Pennsylvania
Given the investment horizon of 90 days KLA Tencor is expected to under-perform the Univest Pennsylvania. In addition to that, KLA Tencor is 1.79 times more volatile than Univest Pennsylvania. It trades about -0.05 of its total potential returns per unit of risk. Univest Pennsylvania is currently generating about 0.01 per unit of volatility. If you would invest 3,156 in Univest Pennsylvania on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Univest Pennsylvania or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLA Tencor vs. Univest Pennsylvania
Performance |
| Timeline |
| KLA Tencor |
| Univest Pennsylvania |
KLA Tencor and Univest Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLA Tencor and Univest Pennsylvania
The main advantage of trading using opposite KLA Tencor and Univest Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLA Tencor position performs unexpectedly, Univest Pennsylvania 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 Univest Pennsylvania will offset losses from the drop in Univest Pennsylvania's long position.| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic Bancorp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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