Correlation Between CREO MEDICAL and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and KIMBALL ELECTRONICS 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 CREO MEDICAL and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREO MEDICAL GRP and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on CREO MEDICAL and KIMBALL ELECTRONICS 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 CREO MEDICAL with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and KIMBALL ELECTRONICS.
Diversification Opportunities for CREO MEDICAL and KIMBALL ELECTRONICS
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CREO and KIMBALL is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and CREO MEDICAL 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 CREO MEDICAL GRP are associated (or correlated) with KIMBALL ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBALL ELECTRONICS has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between CREO MEDICAL and KIMBALL ELECTRONICS
Assuming the 90 days horizon CREO MEDICAL GRP is expected to generate 3.05 times more return on investment than KIMBALL ELECTRONICS. However, CREO MEDICAL is 3.05 times more volatile than KIMBALL ELECTRONICS. It trades about 0.03 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.01 per unit of risk. If you would invest 20.00 in CREO MEDICAL GRP on October 17, 2024 and sell it today you would earn a total of 0.00 from holding CREO MEDICAL GRP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| CREO MEDICAL GRP |
| KIMBALL ELECTRONICS |
CREO MEDICAL and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and KIMBALL ELECTRONICS
The main advantage of trading using opposite CREO MEDICAL and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS will offset losses from the drop in KIMBALL ELECTRONICS's long position.| CREO MEDICAL vs. Fair Isaac Corp | CREO MEDICAL vs. Corsair Gaming | CREO MEDICAL vs. Direct Line Insurance | CREO MEDICAL vs. The Hanover Insurance |
| KIMBALL ELECTRONICS vs. PEPTONIC MEDICAL | KIMBALL ELECTRONICS vs. ONWARD MEDICAL BV | KIMBALL ELECTRONICS vs. CREO MEDICAL GRP | KIMBALL ELECTRONICS vs. SCANDMEDICAL SOLDK 040 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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