Correlation Between KIMBALL ELECTRONICS and Phreesia
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and Phreesia 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 KIMBALL ELECTRONICS and Phreesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and Phreesia, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and Phreesia 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 KIMBALL ELECTRONICS with a short position of Phreesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and Phreesia.
Diversification Opportunities for KIMBALL ELECTRONICS and Phreesia
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between KIMBALL and Phreesia is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia and KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS are associated (or correlated) with Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and Phreesia go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and Phreesia
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the Phreesia. But the stock apears to be less risky and, when comparing its historical volatility, KIMBALL ELECTRONICS is 1.96 times less risky than Phreesia. The stock trades about -0.04 of its potential returns per unit of risk. The Phreesia is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,750 in Phreesia on September 21, 2024 and sell it today you would earn a total of 550.00 from holding Phreesia or generate 31.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. Phreesia
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| Phreesia |
KIMBALL ELECTRONICS and Phreesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and Phreesia
The main advantage of trading using opposite KIMBALL ELECTRONICS and Phreesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, Phreesia 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 Phreesia will offset losses from the drop in Phreesia's long position.| KIMBALL ELECTRONICS vs. Superior Plus Corp | KIMBALL ELECTRONICS vs. SIVERS SEMICONDUCTORS AB | KIMBALL ELECTRONICS vs. Norsk Hydro ASA | KIMBALL ELECTRONICS vs. Reliance Steel Aluminum |
| Phreesia vs. ELMOS SEMICONDUCTOR | Phreesia vs. ARROW ELECTRONICS | Phreesia vs. TT Electronics PLC | Phreesia vs. KIMBALL ELECTRONICS |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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