Correlation Between Qualcomm Incorporated and KLA Tencor
Can any of the company-specific risk be diversified away by investing in both Qualcomm Incorporated 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 Qualcomm Incorporated and KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qualcomm Incorporated and KLA Tencor, you can compare the effects of market volatilities on Qualcomm Incorporated 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 Qualcomm Incorporated with a short position of KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qualcomm Incorporated and KLA Tencor.
Diversification Opportunities for Qualcomm Incorporated and KLA Tencor
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qualcomm and KLA is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qualcomm Incorporated and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor and Qualcomm Incorporated 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 Qualcomm Incorporated 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 Qualcomm Incorporated i.e., Qualcomm Incorporated and KLA Tencor go up and down completely randomly.
Pair Corralation between Qualcomm Incorporated and KLA Tencor
Given the investment horizon of 90 days Qualcomm Incorporated is expected to generate 2.51 times less return on investment than KLA Tencor. But when comparing it to its historical volatility, Qualcomm Incorporated is 1.03 times less risky than KLA Tencor. It trades about 0.08 of its potential returns per unit of risk. KLA Tencor is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 88,339 in KLA Tencor on August 16, 2025 and sell it today you would earn a total of 27,833 from holding KLA Tencor or generate 31.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qualcomm Incorporated vs. KLA Tencor
Performance |
| Timeline |
| Qualcomm Incorporated |
| KLA Tencor |
Qualcomm Incorporated and KLA Tencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qualcomm Incorporated and KLA Tencor
The main advantage of trading using opposite Qualcomm Incorporated and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualcomm Incorporated 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.| Qualcomm Incorporated vs. Applied Materials | Qualcomm Incorporated vs. Lam Research Corp | Qualcomm Incorporated vs. Arm Holdings plc | Qualcomm Incorporated vs. Uber Technologies |
| KLA Tencor vs. Texas Instruments Incorporated | KLA Tencor vs. Applied Materials | KLA Tencor vs. Lam Research Corp | KLA Tencor vs. Intel |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |