Correlation Between KVH Industries and Amplitech
Can any of the company-specific risk be diversified away by investing in both KVH Industries and Amplitech 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 KVH Industries and Amplitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Amplitech Group, you can compare the effects of market volatilities on KVH Industries and Amplitech 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 KVH Industries with a short position of Amplitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Amplitech.
Diversification Opportunities for KVH Industries and Amplitech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KVH and Amplitech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Amplitech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitech Group and KVH Industries 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 KVH Industries are associated (or correlated) with Amplitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitech Group has no effect on the direction of KVH Industries i.e., KVH Industries and Amplitech go up and down completely randomly.
Pair Corralation between KVH Industries and Amplitech
Given the investment horizon of 90 days KVH Industries is expected to under-perform the Amplitech. But the stock apears to be less risky and, when comparing its historical volatility, KVH Industries is 3.98 times less risky than Amplitech. The stock trades about -0.02 of its potential returns per unit of risk. The Amplitech Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Amplitech Group on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Amplitech Group or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Amplitech Group
Performance |
| Timeline |
| KVH Industries |
| Amplitech Group |
KVH Industries and Amplitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Amplitech
The main advantage of trading using opposite KVH Industries and Amplitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, Amplitech 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 Amplitech will offset losses from the drop in Amplitech's long position.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
| Amplitech vs. AmpliTech Group | Amplitech vs. AAC Technologies Holdings | Amplitech vs. Aerkomm | Amplitech vs. Airgain |
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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