Correlation Between KIMBALL ELECTRONICS and Shin Etsu
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and Shin Etsu 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 Shin Etsu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and Shin Etsu Chemical Co, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and Shin Etsu 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 Shin Etsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and Shin Etsu.
Diversification Opportunities for KIMBALL ELECTRONICS and Shin Etsu
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between KIMBALL and Shin is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and Shin Etsu Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Etsu Chemical 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 Shin Etsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Etsu Chemical has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and Shin Etsu go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and Shin Etsu
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to generate 1.23 times more return on investment than Shin Etsu. However, KIMBALL ELECTRONICS is 1.23 times more volatile than Shin Etsu Chemical Co. It trades about 0.0 of its potential returns per unit of risk. Shin Etsu Chemical Co is currently generating about -0.03 per unit of risk. If you would invest 1,900 in KIMBALL ELECTRONICS on November 3, 2024 and sell it today you would lose (90.00) from holding KIMBALL ELECTRONICS or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. Shin Etsu Chemical Co
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| Shin Etsu Chemical |
KIMBALL ELECTRONICS and Shin Etsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and Shin Etsu
The main advantage of trading using opposite KIMBALL ELECTRONICS and Shin Etsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, Shin Etsu 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 Shin Etsu will offset losses from the drop in Shin Etsu'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 |
| Shin Etsu vs. JAPAN TOBACCO UNSPADR12 | Shin Etsu vs. Zoom Video Communications | Shin Etsu vs. Singapore Telecommunications Limited | Shin Etsu vs. WisdomTree Investments |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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