Correlation Between CVR Medical and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both CVR Medical 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 CVR Medical and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Medical Corp and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on CVR Medical 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 CVR Medical with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Medical and KIMBALL ELECTRONICS.
Diversification Opportunities for CVR Medical and KIMBALL ELECTRONICS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVR and KIMBALL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Medical Corp and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and CVR Medical 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 CVR Medical Corp 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 CVR Medical i.e., CVR Medical and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between CVR Medical and KIMBALL ELECTRONICS
If you would invest 1.35 in CVR Medical Corp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding CVR Medical Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CVR Medical Corp vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| CVR Medical Corp |
| KIMBALL ELECTRONICS |
CVR Medical and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Medical and KIMBALL ELECTRONICS
The main advantage of trading using opposite CVR Medical and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Medical 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.| CVR Medical vs. SALESFORCE INC CDR | CVR Medical vs. CARSALESCOM | CVR Medical vs. BOSTON BEER A | CVR Medical vs. CarsalesCom |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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