Correlation Between KIMBALL ELECTRONICS and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and Benchmark 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 KIMBALL ELECTRONICS and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and Benchmark Electronics, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and Benchmark 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 KIMBALL ELECTRONICS with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and Benchmark Electronics.
Diversification Opportunities for KIMBALL ELECTRONICS and Benchmark Electronics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KIMBALL and Benchmark is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics 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 Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and Benchmark Electronics go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and Benchmark Electronics
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to generate 1.23 times more return on investment than Benchmark Electronics. However, KIMBALL ELECTRONICS is 1.23 times more volatile than Benchmark Electronics. It trades about 0.13 of its potential returns per unit of risk. Benchmark Electronics is currently generating about 0.13 per unit of risk. If you would invest 1,670 in KIMBALL ELECTRONICS on August 29, 2024 and sell it today you would earn a total of 180.00 from holding KIMBALL ELECTRONICS or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. Benchmark Electronics
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| Benchmark Electronics |
KIMBALL ELECTRONICS and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and Benchmark Electronics
The main advantage of trading using opposite KIMBALL ELECTRONICS and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, Benchmark 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.| KIMBALL ELECTRONICS vs. FARO Technologies | KIMBALL ELECTRONICS vs. Granite Construction | KIMBALL ELECTRONICS vs. TITAN MACHINERY | KIMBALL ELECTRONICS vs. GLG LIFE TECH |
| Benchmark Electronics vs. Diamyd Medical AB | Benchmark Electronics vs. Aluminum of | Benchmark Electronics vs. Merit Medical Systems | Benchmark Electronics vs. AVITA Medical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |