Correlation Between Amcor Plc and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Amcor Plc and KIMBALL ELECTRONICS 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 Amcor Plc and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amcor plc and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on Amcor Plc and KIMBALL ELECTRONICS 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 Amcor Plc with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amcor Plc and KIMBALL ELECTRONICS.
Diversification Opportunities for Amcor Plc and KIMBALL ELECTRONICS
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amcor and KIMBALL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amcor plc and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and Amcor Plc 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 Amcor plc are associated (or correlated) with KIMBALL ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBALL ELECTRONICS has no effect on the direction of Amcor Plc i.e., Amcor Plc and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between Amcor Plc and KIMBALL ELECTRONICS
Assuming the 90 days horizon Amcor Plc is expected to generate 2.29 times less return on investment than KIMBALL ELECTRONICS. But when comparing it to its historical volatility, Amcor plc is 1.6 times less risky than KIMBALL ELECTRONICS. It trades about 0.13 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,740 in KIMBALL ELECTRONICS on October 23, 2024 and sell it today you would earn a total of 90.00 from holding KIMBALL ELECTRONICS or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amcor plc vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| Amcor plc |
| KIMBALL ELECTRONICS |
Amcor Plc and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amcor Plc and KIMBALL ELECTRONICS
The main advantage of trading using opposite Amcor Plc and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amcor Plc position performs unexpectedly, KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS will offset losses from the drop in KIMBALL ELECTRONICS's long position.| Amcor Plc vs. Easy Software AG | Amcor Plc vs. Playtech plc | Amcor Plc vs. CARSALESCOM | Amcor Plc vs. FLOW TRADERS LTD |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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