Correlation Between KLA Tencor and EMagin
Can any of the company-specific risk be diversified away by investing in both KLA Tencor and EMagin 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 KLA Tencor and EMagin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KLA Tencor and EMagin, you can compare the effects of market volatilities on KLA Tencor and EMagin 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 KLA Tencor with a short position of EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLA Tencor and EMagin.
Diversification Opportunities for KLA Tencor and EMagin
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KLA and EMagin is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding KLA Tencor and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin and KLA Tencor 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 KLA Tencor are associated (or correlated) with EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of KLA Tencor i.e., KLA Tencor and EMagin go up and down completely randomly.
Pair Corralation between KLA Tencor and EMagin
If you would invest 207.00 in EMagin on January 20, 2024 and sell it today you would earn a total of 0.00 from holding EMagin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
KLA Tencor vs. EMagin
Performance |
| Timeline |
| KLA Tencor |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KLA Tencor and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLA Tencor and EMagin
The main advantage of trading using opposite KLA Tencor and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLA Tencor position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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