Correlation Between Noble Group and KLA Tencor
Can any of the company-specific risk be diversified away by investing in both Noble Group and KLA Tencor 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 Noble Group and KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble Group Limited and KLA Tencor, you can compare the effects of market volatilities on Noble Group and KLA Tencor 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 Noble Group with a short position of KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Group and KLA Tencor.
Diversification Opportunities for Noble Group and KLA Tencor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Noble and KLA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Noble Group Limited and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor and Noble Group 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 Noble Group Limited are associated (or correlated) with KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Noble Group i.e., Noble Group and KLA Tencor go up and down completely randomly.
Pair Corralation between Noble Group and KLA Tencor
If you would invest (100.00) in Noble Group Limited on December 4, 2024 and sell it today you would earn a total of 100.00 from holding Noble Group Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Noble Group Limited vs. KLA Tencor
Performance |
| Timeline |
| Noble Group Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| KLA Tencor |
Noble Group and KLA Tencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Group and KLA Tencor
The main advantage of trading using opposite Noble Group and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Group position performs unexpectedly, KLA Tencor 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 KLA Tencor will offset losses from the drop in KLA Tencor's long position.| Noble Group vs. Constellation Brands Class | Noble Group vs. Diageo PLC ADR | Noble Group vs. Biglari Holdings | Noble Group vs. The Coca Cola |
| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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