Correlation Between KVH Industries and China Finance
Can any of the company-specific risk be diversified away by investing in both KVH Industries and China Finance 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 Finance 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 Finance, you can compare the effects of market volatilities on KVH Industries and China Finance 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 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and China Finance.
Diversification Opportunities for KVH Industries and China Finance
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 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Finance 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 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Finance has no effect on the direction of KVH Industries i.e., KVH Industries and China Finance go up and down completely randomly.
Pair Corralation between KVH Industries and China Finance
If you would invest 562.00 in KVH Industries on November 8, 2024 and sell it today you would earn a total of 38.00 from holding KVH Industries or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
KVH Industries vs. China Finance
Performance |
| Timeline |
| KVH Industries |
| China Finance |
KVH Industries and China Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and China Finance
The main advantage of trading using opposite KVH Industries and China Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, China Finance 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 Finance will offset losses from the drop in China Finance'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 |
| China Finance vs. Wizz Air Holdings | China Finance vs. Shagrir Group Vehicle | China Finance vs. HF Sinclair Corp | China Finance vs. BorgWarner |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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