Correlation Between REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REMEDY ENTERTAINMENT OYJ and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS.
Diversification Opportunities for REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REMEDY and KIMBALL is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding REMEDY ENTERTAINMENT OYJ and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT OYJ 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 REMEDY ENTERTAINMENT i.e., REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS
Assuming the 90 days horizon REMEDY ENTERTAINMENT OYJ is expected to under-perform the KIMBALL ELECTRONICS. In addition to that, REMEDY ENTERTAINMENT is 1.4 times more volatile than KIMBALL ELECTRONICS. It trades about -0.18 of its total potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.11 per unit of volatility. If you would invest 1,780 in KIMBALL ELECTRONICS on November 6, 2024 and sell it today you would lose (60.00) from holding KIMBALL ELECTRONICS or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REMEDY ENTERTAINMENT OYJ vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| REMEDY ENTERTAINMENT OYJ |
| KIMBALL ELECTRONICS |
REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS
The main advantage of trading using opposite REMEDY ENTERTAINMENT and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REMEDY ENTERTAINMENT 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.| REMEDY ENTERTAINMENT vs. REINET INVESTMENTS SCA | REMEDY ENTERTAINMENT vs. NORWEGIAN AIR SHUT | REMEDY ENTERTAINMENT vs. CHINA SOUTHN AIR H | REMEDY ENTERTAINMENT vs. CDL INVESTMENT |
| KIMBALL ELECTRONICS vs. EVS Broadcast Equipment | KIMBALL ELECTRONICS vs. Nishi Nippon Railroad Co | KIMBALL ELECTRONICS vs. Air Transport Services | KIMBALL ELECTRONICS vs. Texas Roadhouse |
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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