Correlation Between Event Hospitality and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Event Hospitality 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 Event Hospitality and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Event Hospitality and and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on Event Hospitality 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 Event Hospitality with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Event Hospitality and KIMBALL ELECTRONICS.
Diversification Opportunities for Event Hospitality and KIMBALL ELECTRONICS
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Event and KIMBALL is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Event Hospitality and and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and Event Hospitality 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 Event Hospitality and 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 Event Hospitality i.e., Event Hospitality and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between Event Hospitality and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon Event Hospitality and is expected to generate 0.67 times more return on investment than KIMBALL ELECTRONICS. However, Event Hospitality and is 1.5 times less risky than KIMBALL ELECTRONICS. It trades about 0.02 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.03 per unit of risk. If you would invest 681.00 in Event Hospitality and on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Event Hospitality and or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Event Hospitality and vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| Event Hospitality |
| KIMBALL ELECTRONICS |
Event Hospitality and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Event Hospitality and KIMBALL ELECTRONICS
The main advantage of trading using opposite Event Hospitality and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Event Hospitality 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.| Event Hospitality vs. ARDAGH METAL PACDL 0001 | Event Hospitality vs. Scandinavian Tobacco Group | Event Hospitality vs. Ubisoft Entertainment SA | Event Hospitality vs. Playa Hotels Resorts |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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