Correlation Between GrafTech International and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both GrafTech International 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 GrafTech International and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GrafTech International and Kimball Electronics, you can compare the effects of market volatilities on GrafTech International 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 GrafTech International with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GrafTech International and Kimball Electronics.
Diversification Opportunities for GrafTech International and Kimball Electronics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GrafTech and Kimball is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GrafTech International and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and GrafTech International 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 GrafTech International 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 GrafTech International i.e., GrafTech International and Kimball Electronics go up and down completely randomly.
Pair Corralation between GrafTech International and Kimball Electronics
Considering the 90-day investment horizon GrafTech International is expected to under-perform the Kimball Electronics. In addition to that, GrafTech International is 2.22 times more volatile than Kimball Electronics. It trades about -0.01 of its total potential returns per unit of risk. Kimball Electronics is currently generating about 0.0 per unit of volatility. If you would invest 2,307 in Kimball Electronics on August 27, 2024 and sell it today you would lose (337.00) from holding Kimball Electronics or give up 14.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GrafTech International vs. Kimball Electronics
Performance |
| Timeline |
| GrafTech International |
| Kimball Electronics |
GrafTech International and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GrafTech International and Kimball Electronics
The main advantage of trading using opposite GrafTech International and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GrafTech International 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' long position.| GrafTech International vs. Kimball Electronics | GrafTech International vs. Hayward Holdings | GrafTech International vs. Enersys | GrafTech International vs. Espey Mfg Electronics |
| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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