Correlation Between KVH Industries and Quarterhill
Can any of the company-specific risk be diversified away by investing in both KVH Industries and Quarterhill 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 Quarterhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Quarterhill, you can compare the effects of market volatilities on KVH Industries and Quarterhill 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 Quarterhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Quarterhill.
Diversification Opportunities for KVH Industries and Quarterhill
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KVH and Quarterhill is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Quarterhill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quarterhill 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 Quarterhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quarterhill has no effect on the direction of KVH Industries i.e., KVH Industries and Quarterhill go up and down completely randomly.
Pair Corralation between KVH Industries and Quarterhill
If you would invest 476.00 in KVH Industries on August 28, 2024 and sell it today you would earn a total of 71.00 from holding KVH Industries or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
KVH Industries vs. Quarterhill
Performance |
| Timeline |
| KVH Industries |
| Quarterhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KVH Industries and Quarterhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Quarterhill
The main advantage of trading using opposite KVH Industries and Quarterhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, Quarterhill 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 Quarterhill will offset losses from the drop in Quarterhill's long position.| KVH Industries vs. Ichor Holdings | KVH Industries vs. Fabrinet | KVH Industries vs. Hello Group | KVH Industries vs. Ultra Clean Holdings |
| Quarterhill vs. Edgewater Wireless Systems | Quarterhill vs. Airgain | Quarterhill vs. Optical Cable | Quarterhill vs. Lantronix |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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