Correlation Between KVH Industries and FDG Electric
Can any of the company-specific risk be diversified away by investing in both KVH Industries and FDG Electric 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 FDG Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and FDG Electric Vehicles, you can compare the effects of market volatilities on KVH Industries and FDG Electric 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 FDG Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and FDG Electric.
Diversification Opportunities for KVH Industries and FDG Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KVH and FDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and FDG Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDG Electric Vehicles 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 FDG Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDG Electric Vehicles has no effect on the direction of KVH Industries i.e., KVH Industries and FDG Electric go up and down completely randomly.
Pair Corralation between KVH Industries and FDG Electric
If you would invest 476.00 in KVH Industries on August 27, 2024 and sell it today you would earn a total of 72.00 from holding KVH Industries or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. FDG Electric Vehicles
Performance |
| Timeline |
| KVH Industries |
| FDG Electric Vehicles |
KVH Industries and FDG Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and FDG Electric
The main advantage of trading using opposite KVH Industries and FDG Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, FDG Electric 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 FDG Electric will offset losses from the drop in FDG Electric's long position.| KVH Industries vs. Ichor Holdings | KVH Industries vs. Fabrinet | KVH Industries vs. Hello Group | KVH Industries vs. Ultra Clean Holdings |
| FDG Electric vs. Summit Hotel Properties | FDG Electric vs. Teleflex Incorporated | FDG Electric vs. RBC Bearings Incorporated | FDG Electric vs. The Wendys Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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