Correlation Between KVH Industries and 37190AAA7

Can any of the company-specific risk be diversified away by investing in both KVH Industries and 37190AAA7 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 37190AAA7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KVH Industries and G 175 10 APR 26, you can compare the effects of market volatilities on KVH Industries and 37190AAA7 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 37190AAA7. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and 37190AAA7.

Diversification Opportunities for KVH Industries and 37190AAA7

0.28

Correlation Coefficient

KVH Industries  37190AAA7

Modest diversification

The 3 months correlation between KVH and 37190AAA7 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and G 175 10 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37190AAA7 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 37190AAA7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37190AAA7 has no effect on the direction of KVH Industries i.e., KVH Industries and 37190AAA7 go up and down completely randomly.

Pair Corralation between KVH Industries and 37190AAA7

Given the investment horizon of 90 days KVH Industries is expected to generate 1.08 times more return on investment than 37190AAA7. However, KVH Industries is 1.08 times more volatile than G 175 10 APR 26. It trades about -0.04 of its potential returns per unit of risk. G 175 10 APR 26 is currently generating about -0.35 per unit of risk. If you would invest  582.00  in KVH Industries on October 12, 2024 and sell it today you would lose (13.00) from holding KVH Industries or give up 2.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	40.0%
Values	Daily Returns

KVH Industries  vs.  G 175 10 APR 26

KVH Industries

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KVH Industries are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain technical indicators, KVH Industries demonstrated solid returns over the last few months and may actually be approaching a breakup point.

37190AAA7

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G 175 10 APR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for G 175 10 APR 26 investors.

Pair Trading with KVH Industries and 37190AAA7

The main advantage of trading using opposite KVH Industries and 37190AAA7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, 37190AAA7 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 37190AAA7 will offset losses from the drop in 37190AAA7's long position.

The idea behind KVH Industries and G 175 10 APR 26 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.