Correlation Between KVH Industries and Unum
Can any of the company-specific risk be diversified away by investing in both KVH Industries and Unum 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 Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Unum Group, you can compare the effects of market volatilities on KVH Industries and Unum 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 Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Unum.
Diversification Opportunities for KVH Industries and Unum
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between KVH and Unum is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group 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 Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of KVH Industries i.e., KVH Industries and Unum go up and down completely randomly.
Pair Corralation between KVH Industries and Unum
Given the investment horizon of 90 days KVH Industries is expected to under-perform the Unum. In addition to that, KVH Industries is 4.51 times more volatile than Unum Group. It trades about -0.03 of its total potential returns per unit of risk. Unum Group is currently generating about 0.07 per unit of volatility. If you would invest 2,172 in Unum Group on August 28, 2024 and sell it today you would earn a total of 334.00 from holding Unum Group or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Unum Group
Performance |
| Timeline |
| KVH Industries |
| Unum Group |
KVH Industries and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Unum
The main advantage of trading using opposite KVH Industries and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum's long position.| KVH Industries vs. Ichor Holdings | KVH Industries vs. Fabrinet | KVH Industries vs. Hello Group | KVH Industries vs. Ultra Clean Holdings |
| Unum vs. Nextplat Corp | Unum vs. Xponential Fitness | Unum vs. Universal Display | Unum vs. Sphere Entertainment Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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