Correlation Between KIMBALL ELECTRONICS and PT Bank
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and PT Bank 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 PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and PT Bank Central, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and PT Bank.
Diversification Opportunities for KIMBALL ELECTRONICS and PT Bank
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KIMBALL and BZG2 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Central has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and PT Bank go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and PT Bank
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the PT Bank. But the stock apears to be less risky and, when comparing its historical volatility, KIMBALL ELECTRONICS is 1.87 times less risky than PT Bank. The stock trades about -0.01 of its potential returns per unit of risk. The PT Bank Central is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 55.00 in PT Bank Central on December 4, 2024 and sell it today you would lose (5.00) from holding PT Bank Central or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. PT Bank Central
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| PT Bank Central |
KIMBALL ELECTRONICS and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and PT Bank
The main advantage of trading using opposite KIMBALL ELECTRONICS and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| KIMBALL ELECTRONICS vs. alstria office REIT AG | KIMBALL ELECTRONICS vs. Universal Display | KIMBALL ELECTRONICS vs. UNIVERSAL DISPLAY | KIMBALL ELECTRONICS vs. NORTHEAST UTILITIES |
| PT Bank vs. TOMBADOR IRON LTD | PT Bank vs. GRIFFIN MINING LTD | PT Bank vs. Mount Gibson Iron | PT Bank vs. COSMOSTEEL HLDGS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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