Correlation Between KIMBALL ELECTRONICS and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and FRACTAL GAMING 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 FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and FRACTAL GAMING 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 FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and FRACTAL GAMING.
Diversification Opportunities for KIMBALL ELECTRONICS and FRACTAL GAMING
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KIMBALL and FRACTAL is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP 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 FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and FRACTAL GAMING
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the FRACTAL GAMING. But the stock apears to be less risky and, when comparing its historical volatility, KIMBALL ELECTRONICS is 1.29 times less risky than FRACTAL GAMING. The stock trades about 0.0 of its potential returns per unit of risk. The FRACTAL GAMING GROUP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 186.00 in FRACTAL GAMING GROUP on August 25, 2024 and sell it today you would earn a total of 88.00 from holding FRACTAL GAMING GROUP or generate 47.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| FRACTAL GAMING GROUP |
KIMBALL ELECTRONICS and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and FRACTAL GAMING
The main advantage of trading using opposite KIMBALL ELECTRONICS and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, FRACTAL GAMING 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.| KIMBALL ELECTRONICS vs. YASKAWA ELEC UNSP | KIMBALL ELECTRONICS vs. Varta AG | KIMBALL ELECTRONICS vs. OSRAM LICHT N | KIMBALL ELECTRONICS vs. Bloom Energy |
| FRACTAL GAMING vs. Treasury Wine Estates | FRACTAL GAMING vs. MOVIE GAMES SA | FRACTAL GAMING vs. Dalata Hotel Group | FRACTAL GAMING vs. NAKED WINES PLC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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