Correlation Between KVH Industries and China Tontine
Can any of the company-specific risk be diversified away by investing in both KVH Industries and China Tontine 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 China Tontine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and China Tontine Wines, you can compare the effects of market volatilities on KVH Industries and China Tontine 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 China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and China Tontine.
Diversification Opportunities for KVH Industries and China Tontine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KVH and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines 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 China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of KVH Industries i.e., KVH Industries and China Tontine go up and down completely randomly.
Pair Corralation between KVH Industries and China Tontine
If you would invest 476.00 in KVH Industries on August 28, 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 | 95.45% |
| Values | Daily Returns |
KVH Industries vs. China Tontine Wines
Performance |
| Timeline |
| KVH Industries |
| China Tontine Wines |
KVH Industries and China Tontine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and China Tontine
The main advantage of trading using opposite KVH Industries and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, China Tontine 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 China Tontine will offset losses from the drop in China Tontine's long position.| KVH Industries vs. Ichor Holdings | KVH Industries vs. Fabrinet | KVH Industries vs. Hello Group | KVH Industries vs. Ultra Clean Holdings |
| China Tontine vs. GameStop Corp | China Tontine vs. Arrow Financial | China Tontine vs. Juniata Valley Financial | China Tontine vs. Playtika Holding Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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