Correlation Between Key Tronic and Gulf Island
Can any of the company-specific risk be diversified away by investing in both Key Tronic and Gulf Island 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 Key Tronic and Gulf Island into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Key Tronic and Gulf Island Fabrication, you can compare the effects of market volatilities on Key Tronic and Gulf Island 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 Key Tronic with a short position of Gulf Island. Check out your portfolio center. Please also check ongoing floating volatility patterns of Key Tronic and Gulf Island.
Diversification Opportunities for Key Tronic and Gulf Island
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Key and Gulf is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Key Tronic and Gulf Island Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Island Fabrication and Key Tronic 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 Key Tronic are associated (or correlated) with Gulf Island. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Island Fabrication has no effect on the direction of Key Tronic i.e., Key Tronic and Gulf Island go up and down completely randomly.
Pair Corralation between Key Tronic and Gulf Island
Given the investment horizon of 90 days Key Tronic is expected to generate 7.01 times less return on investment than Gulf Island. In addition to that, Key Tronic is 1.43 times more volatile than Gulf Island Fabrication. It trades about 0.01 of its total potential returns per unit of risk. Gulf Island Fabrication is currently generating about 0.09 per unit of volatility. If you would invest 671.00 in Gulf Island Fabrication on June 7, 2025 and sell it today you would earn a total of 56.00 from holding Gulf Island Fabrication or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Key Tronic vs. Gulf Island Fabrication
Performance |
| Timeline |
| Key Tronic |
| Gulf Island Fabrication |
Key Tronic and Gulf Island Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Key Tronic and Gulf Island
The main advantage of trading using opposite Key Tronic and Gulf Island positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Key Tronic position performs unexpectedly, Gulf Island 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 Gulf Island will offset losses from the drop in Gulf Island's long position.| Key Tronic vs. AGM Group Holdings | Key Tronic vs. AstroNova | Key Tronic vs. Identiv | Key Tronic vs. Palladyne AI Corp |
| Gulf Island vs. Northwest Pipe | Gulf Island vs. ESAB Corp | Gulf Island vs. Insteel Industries | Gulf Island vs. CompoSecure |
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 CEOs Directory module to screen CEOs from public companies around the world.
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