Correlation Between KVH Industries and TechTarget, Common

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

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

Diversification Opportunities for KVH Industries and TechTarget, Common

-0.49

Correlation Coefficient

KVH Industries  TechTarget, Common

Very good diversification

The 3 months correlation between KVH and TechTarget, is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and TechTarget, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechTarget, Common Stock 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 TechTarget, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechTarget, Common Stock has no effect on the direction of KVH Industries i.e., KVH Industries and TechTarget, Common go up and down completely randomly.

Pair Corralation between KVH Industries and TechTarget, Common

Given the investment horizon of 90 days KVH Industries is expected to generate 0.89 times more return on investment than TechTarget, Common. However, KVH Industries is 1.13 times less risky than TechTarget, Common. It trades about -0.08 of its potential returns per unit of risk. TechTarget, Common Stock is currently generating about -0.41 per unit of risk. If you would invest  585.00  in KVH Industries on October 10, 2024 and sell it today you would lose (23.00) from holding KVH Industries or give up 3.93% of portfolio value over 90 days.

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

KVH Industries  vs.  TechTarget, Common Stock

KVH Industries

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KVH Industries are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, KVH Industries may actually be approaching a critical reversion point that can send shares even higher in February 2025.

TechTarget, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TechTarget, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with KVH Industries and TechTarget, Common

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

The idea behind KVH Industries and TechTarget, Common Stock 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.