Correlation Between Keysight Technologies, and CM Hospitalar

Can any of the company-specific risk be diversified away by investing in both Keysight Technologies, and CM Hospitalar 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 Keysight Technologies, and CM Hospitalar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Keysight Technologies, and CM Hospitalar SA, you can compare the effects of market volatilities on Keysight Technologies, and CM Hospitalar 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 Keysight Technologies, with a short position of CM Hospitalar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keysight Technologies, and CM Hospitalar.

Diversification Opportunities for Keysight Technologies, and CM Hospitalar

0.34

Correlation Coefficient

Keysight Technologies,  CM Hospitalar

Weak diversification

The 3 months correlation between Keysight and VVEO3 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Keysight Technologies, and CM Hospitalar SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM Hospitalar SA and Keysight Technologies, 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 Keysight Technologies, are associated (or correlated) with CM Hospitalar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM Hospitalar SA has no effect on the direction of Keysight Technologies, i.e., Keysight Technologies, and CM Hospitalar go up and down completely randomly.

Pair Corralation between Keysight Technologies, and CM Hospitalar

Assuming the 90 days trading horizon Keysight Technologies, is expected to generate 0.04 times more return on investment than CM Hospitalar. However, Keysight Technologies, is 23.75 times less risky than CM Hospitalar. It trades about 0.12 of its potential returns per unit of risk. CM Hospitalar SA is currently generating about -0.02 per unit of risk. If you would invest  44,500  in Keysight Technologies, on April 23, 2025 and sell it today you would earn a total of  490.00  from holding Keysight Technologies, or generate 1.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Keysight Technologies,  vs.  CM Hospitalar SA

Keysight Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keysight Technologies, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Keysight Technologies, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CM Hospitalar SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days CM Hospitalar SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CM Hospitalar is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Keysight Technologies, and CM Hospitalar

The main advantage of trading using opposite Keysight Technologies, and CM Hospitalar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keysight Technologies, position performs unexpectedly, CM Hospitalar 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 CM Hospitalar will offset losses from the drop in CM Hospitalar's long position.

The idea behind Keysight Technologies, and CM Hospitalar SA 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.