Correlation Between James River and Kimball International
Can any of the company-specific risk be diversified away by investing in both James River 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 James River and Kimball International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James River Group and Kimball International, you can compare the effects of market volatilities on James River 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 James River with a short position of Kimball International. Check out your portfolio center. Please also check ongoing floating volatility patterns of James River and Kimball International.
Diversification Opportunities for James River and Kimball International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between James and Kimball is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding James River Group and Kimball International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball International and James River 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 James River Group 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 James River i.e., James River and Kimball International go up and down completely randomly.
Pair Corralation between James River and Kimball International
If you would invest (100.00) in Kimball International on January 15, 2025 and sell it today you would earn a total of 100.00 from holding Kimball International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
James River Group vs. Kimball International
Performance |
| Timeline |
| James River Group |
| Kimball International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
James River and Kimball International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James River and Kimball International
The main advantage of trading using opposite James River and Kimball International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James River 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.| James River vs. Employers Holdings | James River vs. Investors Title | James River vs. AMERISAFE | James River vs. Essent Group |
| 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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