Correlation Between TSOGO SUN and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and KIMBALL ELECTRONICS.
Diversification Opportunities for TSOGO SUN and KIMBALL ELECTRONICS
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TSOGO and KIMBALL is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between TSOGO SUN and KIMBALL ELECTRONICS
Assuming the 90 days horizon TSOGO SUN is expected to generate 1.61 times less return on investment than KIMBALL ELECTRONICS. But when comparing it to its historical volatility, TSOGO SUN GAMING is 1.72 times less risky than KIMBALL ELECTRONICS. It trades about 0.07 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,610 in KIMBALL ELECTRONICS on August 25, 2024 and sell it today you would earn a total of 170.00 from holding KIMBALL ELECTRONICS or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| TSOGO SUN GAMING |
| KIMBALL ELECTRONICS |
TSOGO SUN and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and KIMBALL ELECTRONICS
The main advantage of trading using opposite TSOGO SUN and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. NMI Holdings | TSOGO SUN vs. Origin Agritech | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB |
| KIMBALL ELECTRONICS vs. YASKAWA ELEC UNSP | KIMBALL ELECTRONICS vs. Varta AG | KIMBALL ELECTRONICS vs. OSRAM LICHT N | KIMBALL ELECTRONICS vs. Bloom Energy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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