Correlation Between KIMBALL ELECTRONICS and GALP ENERGIA
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and GALP ENERGIA 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 GALP ENERGIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and GALP ENERGIA B , you can compare the effects of market volatilities on KIMBALL ELECTRONICS and GALP ENERGIA 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 GALP ENERGIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and GALP ENERGIA.
Diversification Opportunities for KIMBALL ELECTRONICS and GALP ENERGIA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KIMBALL and GALP is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and GALP ENERGIA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALP ENERGIA B 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 GALP ENERGIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALP ENERGIA B has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and GALP ENERGIA go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and GALP ENERGIA
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to generate 5.41 times less return on investment than GALP ENERGIA. In addition to that, KIMBALL ELECTRONICS is 1.07 times more volatile than GALP ENERGIA B . It trades about 0.04 of its total potential returns per unit of risk. GALP ENERGIA B is currently generating about 0.23 per unit of volatility. If you would invest 1,539 in GALP ENERGIA B on September 17, 2024 and sell it today you would earn a total of 116.00 from holding GALP ENERGIA B or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. GALP ENERGIA B
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| GALP ENERGIA B |
KIMBALL ELECTRONICS and GALP ENERGIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and GALP ENERGIA
The main advantage of trading using opposite KIMBALL ELECTRONICS and GALP ENERGIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, GALP ENERGIA 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 GALP ENERGIA will offset losses from the drop in GALP ENERGIA'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 |
| GALP ENERGIA vs. PLAYMATES TOYS | GALP ENERGIA vs. TSOGO SUN GAMING | GALP ENERGIA vs. KIMBALL ELECTRONICS | GALP ENERGIA vs. GAMESTOP |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |