Correlation Between Minim and KVH Industries
Can any of the company-specific risk be diversified away by investing in both Minim and KVH Industries 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 Minim and KVH Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minim Inc and KVH Industries, you can compare the effects of market volatilities on Minim and KVH Industries 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 Minim with a short position of KVH Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minim and KVH Industries.
Diversification Opportunities for Minim and KVH Industries
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minim and KVH is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc and KVH Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KVH Industries and Minim 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 Minim Inc are associated (or correlated) with KVH Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KVH Industries has no effect on the direction of Minim i.e., Minim and KVH Industries go up and down completely randomly.
Pair Corralation between Minim and KVH Industries
Given the investment horizon of 90 days Minim Inc is expected to generate 8.93 times more return on investment than KVH Industries. However, Minim is 8.93 times more volatile than KVH Industries. It trades about 0.05 of its potential returns per unit of risk. KVH Industries is currently generating about -0.03 per unit of risk. If you would invest 439.00 in Minim Inc on September 1, 2024 and sell it today you would lose (178.00) from holding Minim Inc or give up 40.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.08% |
| Values | Daily Returns |
Minim Inc vs. KVH Industries
Performance |
| Timeline |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KVH Industries |
Minim and KVH Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minim and KVH Industries
The main advantage of trading using opposite Minim and KVH Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim position performs unexpectedly, KVH Industries 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 KVH Industries will offset losses from the drop in KVH Industries' long position.| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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