Correlation Between Key Tronic and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both Key Tronic and Nano Dimension 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 Key Tronic and Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Key Tronic and Nano Dimension, you can compare the effects of market volatilities on Key Tronic and Nano Dimension 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 Key Tronic with a short position of Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of Key Tronic and Nano Dimension.
Diversification Opportunities for Key Tronic and Nano Dimension
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Key and Nano is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Key Tronic and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension and Key Tronic 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 Key Tronic are associated (or correlated) with Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of Key Tronic i.e., Key Tronic and Nano Dimension go up and down completely randomly.
Pair Corralation between Key Tronic and Nano Dimension
Given the investment horizon of 90 days Key Tronic is expected to under-perform the Nano Dimension. But the stock apears to be less risky and, when comparing its historical volatility, Key Tronic is 2.07 times less risky than Nano Dimension. The stock trades about -0.25 of its potential returns per unit of risk. The Nano Dimension is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Nano Dimension on September 8, 2024 and sell it today you would earn a total of 21.00 from holding Nano Dimension or generate 9.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Key Tronic vs. Nano Dimension
Performance |
Timeline |
Key Tronic |
Nano Dimension |
Key Tronic and Nano Dimension Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Key Tronic and Nano Dimension
The main advantage of trading using opposite Key Tronic and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Key Tronic position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.Key Tronic vs. AGM Group Holdings | Key Tronic vs. TransAct Technologies Incorporated | Key Tronic vs. AstroNova | Key Tronic vs. Quantum |
Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |