Correlation Between Knowles Cor and QuickLogic
Can any of the company-specific risk be diversified away by investing in both Knowles Cor and QuickLogic 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 QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and QuickLogic, you can compare the effects of market volatilities on Knowles Cor and QuickLogic 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 QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and QuickLogic.
Diversification Opportunities for Knowles Cor and QuickLogic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Knowles and QuickLogic is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic 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 QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Knowles Cor i.e., Knowles Cor and QuickLogic go up and down completely randomly.
Pair Corralation between Knowles Cor and QuickLogic
Allowing for the 90-day total investment horizon Knowles Cor is expected to generate 1.53 times less return on investment than QuickLogic. But when comparing it to its historical volatility, Knowles Cor is 2.89 times less risky than QuickLogic. It trades about 0.29 of its potential returns per unit of risk. QuickLogic is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 548.00 in QuickLogic on April 6, 2025 and sell it today you would earn a total of 72.00 from holding QuickLogic or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knowles Cor vs. QuickLogic
Performance |
| Timeline |
| Knowles Cor |
| QuickLogic |
Knowles Cor and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and QuickLogic
The main advantage of trading using opposite Knowles Cor and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.| Knowles Cor vs. Fabrinet | Knowles Cor vs. Kimball Electronics | Knowles Cor vs. Ubiquiti Networks | Knowles Cor vs. Deswell Industries |
| QuickLogic vs. Tantech Holdings | QuickLogic vs. NETGEAR | QuickLogic vs. Edgewell Personal Care | QuickLogic vs. Arrow Electronics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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