Correlation Between KIMBALL ELECTRONICS and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and ALBIS LEASING 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 ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and ALBIS LEASING AG, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and ALBIS LEASING.
Diversification Opportunities for KIMBALL ELECTRONICS and ALBIS LEASING
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KIMBALL and ALBIS is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and ALBIS LEASING go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and ALBIS LEASING
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the ALBIS LEASING. In addition to that, KIMBALL ELECTRONICS is 2.71 times more volatile than ALBIS LEASING AG. It trades about -0.01 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.07 per unit of volatility. If you would invest 211.00 in ALBIS LEASING AG on October 16, 2024 and sell it today you would earn a total of 63.00 from holding ALBIS LEASING AG or generate 29.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. ALBIS LEASING AG
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| ALBIS LEASING AG |
KIMBALL ELECTRONICS and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and ALBIS LEASING
The main advantage of trading using opposite KIMBALL ELECTRONICS and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| KIMBALL ELECTRONICS vs. Chongqing Machinery Electric | KIMBALL ELECTRONICS vs. Playmates Toys Limited | KIMBALL ELECTRONICS vs. PLAY2CHILL SA ZY | KIMBALL ELECTRONICS vs. InPlay Oil Corp |
| ALBIS LEASING vs. ELECTRONIC ARTS | ALBIS LEASING vs. Samsung Electronics Co | ALBIS LEASING vs. Benchmark Electronics | ALBIS LEASING 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |