Correlation Between Flexsteel Industries and Kimball International
Can any of the company-specific risk be diversified away by investing in both Flexsteel Industries 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 Flexsteel Industries and Kimball International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexsteel Industries and Kimball International, you can compare the effects of market volatilities on Flexsteel Industries 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 Flexsteel Industries with a short position of Kimball International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexsteel Industries and Kimball International.
Diversification Opportunities for Flexsteel Industries and Kimball International
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Flexsteel and Kimball is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Flexsteel Industries and Kimball International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball International and Flexsteel Industries 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 Flexsteel Industries 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 Flexsteel Industries i.e., Flexsteel Industries and Kimball International go up and down completely randomly.
Pair Corralation between Flexsteel Industries and Kimball International
If you would invest 5,802 in Flexsteel Industries on August 28, 2024 and sell it today you would earn a total of 135.00 from holding Flexsteel Industries or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Flexsteel Industries vs. Kimball International
Performance |
| Timeline |
| Flexsteel Industries |
| Kimball International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flexsteel Industries and Kimball International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexsteel Industries and Kimball International
The main advantage of trading using opposite Flexsteel Industries and Kimball International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexsteel Industries 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.| Flexsteel Industries vs. Willis Lease Finance | Flexsteel Industries vs. Rocky Brands | Flexsteel Industries vs. First Business Financial |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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