Correlation Between KVH Industries and 125523CS7

Can any of the company-specific risk be diversified away by investing in both KVH Industries and 125523CS7 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 125523CS7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KVH Industries and CI 54 15 MAR 33, you can compare the effects of market volatilities on KVH Industries and 125523CS7 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 125523CS7. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and 125523CS7.

Diversification Opportunities for KVH Industries and 125523CS7

-0.19

Correlation Coefficient

KVH Industries  125523CS7

Good diversification

The 3 months correlation between KVH and 125523CS7 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and CI 54 15 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 125523CS7 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 125523CS7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 125523CS7 has no effect on the direction of KVH Industries i.e., KVH Industries and 125523CS7 go up and down completely randomly.

Pair Corralation between KVH Industries and 125523CS7

Given the investment horizon of 90 days KVH Industries is expected to under-perform the 125523CS7. In addition to that, KVH Industries is 4.07 times more volatile than CI 54 15 MAR 33. It trades about -0.03 of its total potential returns per unit of risk. CI 54 15 MAR 33 is currently generating about 0.02 per unit of volatility. If you would invest  9,890  in CI 54 15 MAR 33 on October 10, 2024 and sell it today you would earn a total of  623.00  from holding CI 54 15 MAR 33 or generate 6.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.71%
Values	Daily Returns

KVH Industries  vs.  CI 54 15 MAR 33

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.

125523CS7

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CI 54 15 MAR 33 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 125523CS7 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with KVH Industries and 125523CS7

The main advantage of trading using opposite KVH Industries and 125523CS7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, 125523CS7 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 125523CS7 will offset losses from the drop in 125523CS7's long position.

The idea behind KVH Industries and CI 54 15 MAR 33 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.