Correlation Between Oxurion NV and KLA
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and KLA 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 Oxurion NV and KLA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and KLA Corporation, you can compare the effects of market volatilities on Oxurion NV and KLA 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 Oxurion NV with a short position of KLA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and KLA.
Diversification Opportunities for Oxurion NV and KLA
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oxurion and KLA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and KLA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Corporation and Oxurion NV 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 Oxurion NV are associated (or correlated) with KLA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Corporation has no effect on the direction of Oxurion NV i.e., Oxurion NV and KLA go up and down completely randomly.
Pair Corralation between Oxurion NV and KLA
Assuming the 90 days horizon Oxurion NV is expected to under-perform the KLA. In addition to that, Oxurion NV is 2.03 times more volatile than KLA Corporation. It trades about -0.14 of its total potential returns per unit of risk. KLA Corporation is currently generating about -0.01 per unit of volatility. If you would invest 70,273 in KLA Corporation on August 28, 2024 and sell it today you would lose (8,573) from holding KLA Corporation or give up 12.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.5% |
| Values | Daily Returns |
Oxurion NV vs. KLA Corp.
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KLA Corporation |
Oxurion NV and KLA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and KLA
The main advantage of trading using opposite Oxurion NV and KLA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, KLA 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 will offset losses from the drop in KLA's long position.| Oxurion NV vs. TITANIUM TRANSPORTGROUP | Oxurion NV vs. Broadcom | Oxurion NV vs. Nishi Nippon Railroad Co | Oxurion NV vs. COPLAND ROAD CAPITAL |
| KLA vs. Gaztransport Technigaz SA | KLA vs. Jupiter Fund Management | KLA vs. Transportadora de Gas | KLA vs. Sims Metal Management |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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