Correlation Between KVH Industries and First Ship
Can any of the company-specific risk be diversified away by investing in both KVH Industries and First Ship 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 First Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and First Ship Lease, you can compare the effects of market volatilities on KVH Industries and First Ship 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 First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and First Ship.
Diversification Opportunities for KVH Industries and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KVH and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of KVH Industries i.e., KVH Industries and First Ship go up and down completely randomly.
Pair Corralation between KVH Industries and First Ship
If you would invest 494.00 in KVH Industries on November 1, 2024 and sell it today you would earn a total of 110.00 from holding KVH Industries or generate 22.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.43% |
| Values | Daily Returns |
KVH Industries vs. First Ship Lease
Performance |
| Timeline |
| KVH Industries |
| First Ship Lease |
KVH Industries and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and First Ship
The main advantage of trading using opposite KVH Industries and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.| KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Silicom | KVH Industries vs. Knowles Cor | KVH Industries vs. Mynaric AG ADR |
| First Ship vs. Air Products and | First Ship vs. Sealed Air | First Ship vs. Grocery Outlet Holding | First Ship vs. Titan Machinery |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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