Correlation Between Traeger and Kimball International
Can any of the company-specific risk be diversified away by investing in both Traeger and Kimball International 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 Traeger and Kimball International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Traeger and Kimball International, you can compare the effects of market volatilities on Traeger and Kimball International 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 Traeger with a short position of Kimball International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traeger and Kimball International.
Diversification Opportunities for Traeger and Kimball International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Traeger and Kimball is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Traeger and Kimball International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball International and Traeger 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 Traeger are associated (or correlated) with Kimball International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimball International has no effect on the direction of Traeger i.e., Traeger and Kimball International go up and down completely randomly.
Pair Corralation between Traeger and Kimball International
If you would invest 315.00 in Traeger on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Traeger or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Traeger vs. Kimball International
Performance |
| Timeline |
| Traeger |
| Kimball International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Traeger and Kimball International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Traeger and Kimball International
The main advantage of trading using opposite Traeger and Kimball International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traeger position performs unexpectedly, Kimball International 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 International will offset losses from the drop in Kimball International's long position.| Traeger vs. Viomi Technology ADR | Traeger vs. Energy Focu | Traeger vs. Flexsteel Industries | Traeger vs. Ethan Allen Interiors |
| Kimball International vs. Kimball Electronics | Kimball International vs. Interface | Kimball International vs. James River Group | Kimball International vs. Midland States Bancorp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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