Correlation Between KIMBALL ELECTRONICS and Microsoft
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and Microsoft 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 Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and Microsoft, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and Microsoft.
Diversification Opportunities for KIMBALL ELECTRONICS and Microsoft
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KIMBALL and Microsoft is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and Microsoft go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and Microsoft
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the Microsoft. In addition to that, KIMBALL ELECTRONICS is 1.44 times more volatile than Microsoft. It trades about -0.21 of its total potential returns per unit of risk. Microsoft is currently generating about 0.19 per unit of volatility. If you would invest 39,870 in Microsoft on September 27, 2024 and sell it today you would earn a total of 1,830 from holding Microsoft or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. Microsoft
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| Microsoft |
KIMBALL ELECTRONICS and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and Microsoft
The main advantage of trading using opposite KIMBALL ELECTRONICS and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| KIMBALL ELECTRONICS vs. Delta Electronics Public | KIMBALL ELECTRONICS vs. YASKAWA ELEC UNSP | KIMBALL ELECTRONICS vs. Plug Power | KIMBALL ELECTRONICS vs. VERTIV HOLCL A |
| Microsoft vs. ELECTRONIC ARTS | Microsoft vs. Schweizer Electronic AG | Microsoft vs. GAMESTOP | Microsoft 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |