Correlation Between Knowles Cor and EXFO
Can any of the company-specific risk be diversified away by investing in both Knowles Cor and EXFO 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 Knowles Cor and EXFO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and EXFO Inc, you can compare the effects of market volatilities on Knowles Cor and EXFO 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 Knowles Cor with a short position of EXFO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and EXFO.
Diversification Opportunities for Knowles Cor and EXFO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Knowles and EXFO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor and EXFO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXFO Inc and Knowles Cor 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 Knowles Cor are associated (or correlated) with EXFO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXFO Inc has no effect on the direction of Knowles Cor i.e., Knowles Cor and EXFO go up and down completely randomly.
Pair Corralation between Knowles Cor and EXFO
If you would invest 1,534 in Knowles Cor on January 25, 2024 and sell it today you would earn a total of 70.00 from holding Knowles Cor or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Knowles Cor vs. EXFO Inc
Performance |
| Timeline |
| Knowles Cor |
| EXFO Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Knowles Cor and EXFO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and EXFO
The main advantage of trading using opposite Knowles Cor and EXFO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor position performs unexpectedly, EXFO 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 EXFO will offset losses from the drop in EXFO's long position.| Knowles Cor vs. Mynaric AG ADR | Knowles Cor vs. Comtech Telecommunications Corp | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
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 CEOs Directory module to screen CEOs from public companies around the world.
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