Correlation Between Knowles Cor and Immersion
Can any of the company-specific risk be diversified away by investing in both Knowles Cor and Immersion 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 Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and Immersion, you can compare the effects of market volatilities on Knowles Cor and Immersion 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 Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and Immersion.
Diversification Opportunities for Knowles Cor and Immersion
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Knowles and Immersion is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor and Immersion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immersion 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 Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immersion has no effect on the direction of Knowles Cor i.e., Knowles Cor and Immersion go up and down completely randomly.
Pair Corralation between Knowles Cor and Immersion
Allowing for the 90-day total investment horizon Knowles Cor is expected to generate 1.03 times more return on investment than Immersion. However, Knowles Cor is 1.03 times more volatile than Immersion. It trades about 0.21 of its potential returns per unit of risk. Immersion is currently generating about -0.03 per unit of risk. If you would invest 1,660 in Knowles Cor on May 26, 2025 and sell it today you would earn a total of 497.00 from holding Knowles Cor or generate 29.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knowles Cor vs. Immersion
Performance |
| Timeline |
| Knowles Cor |
| Immersion |
Knowles Cor and Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and Immersion
The main advantage of trading using opposite Knowles Cor and Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor position performs unexpectedly, Immersion 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 Immersion will offset losses from the drop in Immersion's long position.| Knowles Cor vs. KVH Industries | Knowles Cor vs. NETGEAR | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
| Immersion vs. CoreCard Corp | Immersion vs. ADEIA P | Immersion vs. Materialise NV | Immersion vs. CS Disco LLC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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