Correlation Between Nano Dimension and Key Tronic
Can any of the company-specific risk be diversified away by investing in both Nano Dimension and Key Tronic 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 Nano Dimension and Key Tronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Dimension and Key Tronic, you can compare the effects of market volatilities on Nano Dimension and Key Tronic 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 Nano Dimension with a short position of Key Tronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Dimension and Key Tronic.
Diversification Opportunities for Nano Dimension and Key Tronic
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nano and Key is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and Key Tronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Key Tronic and Nano Dimension 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 Nano Dimension are associated (or correlated) with Key Tronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Key Tronic has no effect on the direction of Nano Dimension i.e., Nano Dimension and Key Tronic go up and down completely randomly.
Pair Corralation between Nano Dimension and Key Tronic
Given the investment horizon of 90 days Nano Dimension is expected to generate 7.26 times less return on investment than Key Tronic. In addition to that, Nano Dimension is 1.24 times more volatile than Key Tronic. It trades about 0.02 of its total potential returns per unit of risk. Key Tronic is currently generating about 0.14 per unit of volatility. If you would invest 457.00 in Key Tronic on September 5, 2024 and sell it today you would earn a total of 98.00 from holding Key Tronic or generate 21.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nano Dimension vs. Key Tronic
Performance |
Timeline |
Nano Dimension |
Key Tronic |
Nano Dimension and Key Tronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nano Dimension and Key Tronic
The main advantage of trading using opposite Nano Dimension and Key Tronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension position performs unexpectedly, Key Tronic 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 Key Tronic will offset losses from the drop in Key Tronic's long position.Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
Key Tronic vs. AGM Group Holdings | Key Tronic vs. TransAct Technologies Incorporated | Key Tronic vs. AstroNova | Key Tronic vs. Quantum |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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