Correlation Between GREENX METALS and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and KIMBALL ELECTRONICS.
Diversification Opportunities for GREENX METALS and KIMBALL ELECTRONICS
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GREENX and KIMBALL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between GREENX METALS and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the KIMBALL ELECTRONICS. In addition to that, GREENX METALS is 1.64 times more volatile than KIMBALL ELECTRONICS. It trades about -0.03 of its total potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.01 per unit of volatility. If you would invest 2,040 in KIMBALL ELECTRONICS on August 28, 2024 and sell it today you would lose (190.00) from holding KIMBALL ELECTRONICS or give up 9.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| GREENX METALS LTD |
| KIMBALL ELECTRONICS |
GREENX METALS and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and KIMBALL ELECTRONICS
The main advantage of trading using opposite GREENX METALS and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. PERENNIAL ENERGY HD 01 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech |
| KIMBALL ELECTRONICS vs. FARO Technologies | KIMBALL ELECTRONICS vs. Granite Construction | KIMBALL ELECTRONICS vs. TITAN MACHINERY | KIMBALL ELECTRONICS vs. GLG LIFE TECH |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |