Correlation Between VOXX International and Kaman
Can any of the company-specific risk be diversified away by investing in both VOXX International 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 VOXX International and Kaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and Kaman, you can compare the effects of market volatilities on VOXX International 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 VOXX International with a short position of Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and Kaman.
Diversification Opportunities for VOXX International and Kaman
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VOXX and Kaman is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman and VOXX International 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 VOXX International 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 VOXX International i.e., VOXX International and Kaman go up and down completely randomly.
Pair Corralation between VOXX International and Kaman
Given the investment horizon of 90 days VOXX International is expected to under-perform the Kaman. In addition to that, VOXX International is 29.04 times more volatile than Kaman. It trades about -0.29 of its total potential returns per unit of risk. Kaman is currently generating about 0.11 per unit of volatility. If you would invest 4,578 in Kaman on January 17, 2024 and sell it today you would earn a total of 8.00 from holding Kaman or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
VOXX International vs. Kaman
Performance |
| Timeline |
| VOXX International |
| Kaman |
VOXX International and Kaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VOXX International and Kaman
The main advantage of trading using opposite VOXX International and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International 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.| VOXX International vs. LG Display Co | VOXX International vs. Vizio Holding Corp | VOXX International vs. Turtle Beach Corp | VOXX International vs. Emerson Radio |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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