Correlation Between Trimble and Keyence

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

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

Diversification Opportunities for Trimble and Keyence

-0.72

Correlation Coefficient

Trimble  Keyence

Pay attention - limited upside

The 3 months correlation between Trimble and Keyence is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Trimble and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence and Trimble 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 Trimble are associated (or correlated) with Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of Trimble i.e., Trimble and Keyence go up and down completely randomly.

Pair Corralation between Trimble and Keyence

Given the investment horizon of 90 days Trimble is expected to generate 0.42 times more return on investment than Keyence. However, Trimble is 2.36 times less risky than Keyence. It trades about 0.4 of its potential returns per unit of risk. Keyence is currently generating about -0.07 per unit of risk. If you would invest  6,254  in Trimble on May 1, 2025 and sell it today you would earn a total of  2,215  from holding Trimble or generate 35.42% return on investment over 90 days.

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

Trimble  vs.  Keyence

Trimble

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Trimble are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Trimble sustained solid returns over the last few months and may actually be approaching a breakup point.

Keyence

Risk-Adjusted Performance

Very Weak

Over the last 90 days Keyence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Trimble and Keyence

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

The idea behind Trimble and Keyence 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..