Correlation Between Hollysys Automation and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both Hollysys Automation 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 Hollysys Automation and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hollysys Automation Technologies and Kimball Electronics, you can compare the effects of market volatilities on Hollysys Automation 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 Hollysys Automation with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollysys Automation and Kimball Electronics.
Diversification Opportunities for Hollysys Automation and Kimball Electronics
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hollysys and Kimball is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hollysys Automation Technologi and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Hollysys Automation 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 Hollysys Automation Technologies 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 Hollysys Automation i.e., Hollysys Automation and Kimball Electronics go up and down completely randomly.
Pair Corralation between Hollysys Automation and Kimball Electronics
If you would invest 1,815 in Kimball Electronics on August 27, 2024 and sell it today you would earn a total of 155.00 from holding Kimball Electronics or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hollysys Automation Technologi vs. Kimball Electronics
Performance |
| Timeline |
| Hollysys Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kimball Electronics |
Hollysys Automation and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollysys Automation and Kimball Electronics
The main advantage of trading using opposite Hollysys Automation and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollysys Automation 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.| Hollysys Automation vs. Huazhu Group | Hollysys Automation vs. VNET Group DRC | Hollysys Automation vs. Noah Holdings |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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