Correlation Between Internet Gold and KLA Tencor

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Can any of the company-specific risk be diversified away by investing in both Internet Gold and KLA Tencor 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 Internet Gold and KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Gold Golden and KLA Tencor, you can compare the effects of market volatilities on Internet Gold and KLA Tencor 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 Internet Gold with a short position of KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Gold and KLA Tencor.

Diversification Opportunities for Internet Gold and KLA Tencor

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Internet and KLA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Internet Gold Golden and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor and Internet Gold 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 Internet Gold Golden are associated (or correlated) with KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Internet Gold i.e., Internet Gold and KLA Tencor go up and down completely randomly.

Pair Corralation between Internet Gold and KLA Tencor

If you would invest  90,746  in KLA Tencor on September 7, 2025 and sell it today you would earn a total of  30,700  from holding KLA Tencor or generate 33.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Internet Gold Golden  vs.  KLA Tencor

 Performance 
       Timeline  
Internet Gold Golden 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Internet Gold Golden has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Internet Gold is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
KLA Tencor 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in KLA Tencor are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, KLA Tencor exhibited solid returns over the last few months and may actually be approaching a breakup point.

Internet Gold and KLA Tencor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Internet Gold and KLA Tencor

The main advantage of trading using opposite Internet Gold and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Gold position performs unexpectedly, KLA Tencor 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 KLA Tencor will offset losses from the drop in KLA Tencor's long position.
The idea behind Internet Gold Golden and KLA Tencor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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