Correlation Between KVH Industries and Zhihu
Can any of the company-specific risk be diversified away by investing in both KVH Industries and Zhihu 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 Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Zhihu Inc ADR, you can compare the effects of market volatilities on KVH Industries and Zhihu 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 Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Zhihu.
Diversification Opportunities for KVH Industries and Zhihu
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between KVH and Zhihu is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR 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 Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of KVH Industries i.e., KVH Industries and Zhihu go up and down completely randomly.
Pair Corralation between KVH Industries and Zhihu
Given the investment horizon of 90 days KVH Industries is expected to generate 0.64 times more return on investment than Zhihu. However, KVH Industries is 1.56 times less risky than Zhihu. It trades about 0.06 of its potential returns per unit of risk. Zhihu Inc ADR is currently generating about -0.01 per unit of risk. If you would invest 472.00 in KVH Industries on November 3, 2024 and sell it today you would earn a total of 139.00 from holding KVH Industries or generate 29.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Zhihu Inc ADR
Performance |
| Timeline |
| KVH Industries |
| Zhihu Inc ADR |
KVH Industries and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Zhihu
The main advantage of trading using opposite KVH Industries and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, Zhihu 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 Zhihu will offset losses from the drop in Zhihu'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 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |