Correlation Between VSE and Kaman
Can any of the company-specific risk be diversified away by investing in both VSE and Kaman 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 VSE and Kaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VSE Corporation and Kaman, you can compare the effects of market volatilities on VSE and Kaman 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 VSE with a short position of Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of VSE and Kaman.
Diversification Opportunities for VSE and Kaman
Pay attention - limited upside
The 3 months correlation between VSE and Kaman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VSE Corp. and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman and VSE 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 VSE Corporation are associated (or correlated) with Kaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaman has no effect on the direction of VSE i.e., VSE and Kaman go up and down completely randomly.
Pair Corralation between VSE and Kaman
If you would invest 10,215 in VSE Corporation on December 4, 2024 and sell it today you would earn a total of 1,127 from holding VSE Corporation or generate 11.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
VSE Corp. vs. Kaman
Performance |
Timeline |
VSE Corporation |
Kaman |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
VSE and Kaman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VSE and Kaman
The main advantage of trading using opposite VSE and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VSE position performs unexpectedly, Kaman 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 Kaman will offset losses from the drop in Kaman's long position.VSE vs. Park Electrochemical | VSE vs. Innovative Solutions and | VSE vs. Curtiss Wright | VSE vs. National Presto Industries |
Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |