Correlation Between Celestica and Keysight Technologies
Can any of the company-specific risk be diversified away by investing in both Celestica and Keysight Technologies 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 Celestica and Keysight Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Keysight Technologies, you can compare the effects of market volatilities on Celestica and Keysight Technologies 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 Celestica with a short position of Keysight Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Keysight Technologies.
Diversification Opportunities for Celestica and Keysight Technologies
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Celestica and Keysight is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Keysight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keysight Technologies and Celestica 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 Celestica are associated (or correlated) with Keysight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keysight Technologies has no effect on the direction of Celestica i.e., Celestica and Keysight Technologies go up and down completely randomly.
Pair Corralation between Celestica and Keysight Technologies
Considering the 90-day investment horizon Celestica is expected to generate 2.15 times more return on investment than Keysight Technologies. However, Celestica is 2.15 times more volatile than Keysight Technologies. It trades about 0.24 of its potential returns per unit of risk. Keysight Technologies is currently generating about 0.08 per unit of risk. If you would invest 19,488 in Celestica on August 16, 2025 and sell it today you would earn a total of 13,969 from holding Celestica or generate 71.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celestica vs. Keysight Technologies
Performance |
| Timeline |
| Celestica |
| Keysight Technologies |
Celestica and Keysight Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Keysight Technologies
The main advantage of trading using opposite Celestica and Keysight Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Keysight Technologies 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 Keysight Technologies will offset losses from the drop in Keysight Technologies' long position.| Celestica vs. Garmin | Celestica vs. Keysight Technologies | Celestica vs. Fair Isaac | Celestica vs. Nokia Corp ADR |
| Keysight Technologies vs. Sandisk Corp | Keysight Technologies vs. Celestica | Keysight Technologies vs. Hewlett Packard Enterprise | Keysight Technologies vs. Teradyne |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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