Correlation Between KVH Industries and Supercom
Can any of the company-specific risk be diversified away by investing in both KVH Industries and Supercom 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 Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Supercom, you can compare the effects of market volatilities on KVH Industries and Supercom 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 Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Supercom.
Diversification Opportunities for KVH Industries and Supercom
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KVH and Supercom is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom 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 Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of KVH Industries i.e., KVH Industries and Supercom go up and down completely randomly.
Pair Corralation between KVH Industries and Supercom
Given the investment horizon of 90 days KVH Industries is expected to generate 0.46 times more return on investment than Supercom. However, KVH Industries is 2.16 times less risky than Supercom. It trades about 0.42 of its potential returns per unit of risk. Supercom is currently generating about 0.17 per unit of risk. If you would invest 463.00 in KVH Industries on September 1, 2024 and sell it today you would earn a total of 88.00 from holding KVH Industries or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Supercom
Performance |
| Timeline |
| KVH Industries |
| Supercom |
KVH Industries and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Supercom
The main advantage of trading using opposite KVH Industries and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom'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 |
| Supercom vs. Desktop Metal | Supercom vs. Fabrinet | Supercom vs. Knowles Cor | Supercom vs. Ubiquiti Networks |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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