Correlation Between KIMBALL ELECTRONICS and Vidrala SA
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and Vidrala SA 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 Vidrala SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and Vidrala SA, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and Vidrala SA 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 Vidrala SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and Vidrala SA.
Diversification Opportunities for KIMBALL ELECTRONICS and Vidrala SA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KIMBALL and Vidrala is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and Vidrala SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vidrala SA 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 Vidrala SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vidrala SA has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and Vidrala SA go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and Vidrala SA
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the Vidrala SA. In addition to that, KIMBALL ELECTRONICS is 1.54 times more volatile than Vidrala SA. It trades about -0.01 of its total potential returns per unit of risk. Vidrala SA is currently generating about 0.03 per unit of volatility. If you would invest 7,472 in Vidrala SA on October 11, 2024 and sell it today you would earn a total of 1,648 from holding Vidrala SA or generate 22.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIMBALL ELECTRONICS vs. Vidrala SA
Performance |
| Timeline |
| KIMBALL ELECTRONICS |
| Vidrala SA |
KIMBALL ELECTRONICS and Vidrala SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBALL ELECTRONICS and Vidrala SA
The main advantage of trading using opposite KIMBALL ELECTRONICS and Vidrala SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, Vidrala SA 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 Vidrala SA will offset losses from the drop in Vidrala SA's long position.| KIMBALL ELECTRONICS vs. AWILCO DRILLING PLC | KIMBALL ELECTRONICS vs. YOOMA WELLNESS INC | KIMBALL ELECTRONICS vs. MCEWEN MINING INC | KIMBALL ELECTRONICS vs. PURETECH HEALTH PLC |
| Vidrala SA vs. CVR Medical Corp | Vidrala SA vs. KIMBALL ELECTRONICS | Vidrala SA vs. GLOBUS MEDICAL A | Vidrala SA vs. MEDICAL FACILITIES NEW |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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