Correlation Between KVH Industries and DIH Holding

Can any of the company-specific risk be diversified away by investing in both KVH Industries and DIH Holding 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 DIH Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KVH Industries and DIH Holding US,, you can compare the effects of market volatilities on KVH Industries and DIH Holding 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 DIH Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and DIH Holding.

Diversification Opportunities for KVH Industries and DIH Holding

-0.02

Correlation Coefficient

KVH Industries  DIH Holding

Good diversification

The 3 months correlation between KVH and DIH is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and DIH Holding US, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIH Holding US, 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 DIH Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIH Holding US, has no effect on the direction of KVH Industries i.e., KVH Industries and DIH Holding go up and down completely randomly.

Pair Corralation between KVH Industries and DIH Holding

Given the investment horizon of 90 days KVH Industries is expected to generate 0.11 times more return on investment than DIH Holding. However, KVH Industries is 8.73 times less risky than DIH Holding. It trades about -0.06 of its potential returns per unit of risk. DIH Holding US, is currently generating about -0.04 per unit of risk. If you would invest  578.00  in KVH Industries on December 17, 2024 and sell it today you would lose (49.00) from holding KVH Industries or give up 8.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KVH Industries  vs.  DIH Holding US,

KVH Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days KVH Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

DIH Holding US,

Risk-Adjusted Performance

Very Weak

Over the last 90 days DIH Holding US, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with KVH Industries and DIH Holding

The main advantage of trading using opposite KVH Industries and DIH Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, DIH Holding 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 DIH Holding will offset losses from the drop in DIH Holding's long position.

The idea behind KVH Industries and DIH Holding US, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.