Correlation Between Kimball International and Traeger
Can any of the company-specific risk be diversified away by investing in both Kimball International and Traeger 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 Kimball International and Traeger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball International and Traeger, you can compare the effects of market volatilities on Kimball International and Traeger 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 Kimball International with a short position of Traeger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball International and Traeger.
Diversification Opportunities for Kimball International and Traeger
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimball and Traeger is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kimball International and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger and Kimball 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 Kimball International are associated (or correlated) with Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of Kimball International i.e., Kimball International and Traeger go up and down completely randomly.
Pair Corralation between Kimball International and Traeger
If you would invest 315.00 in Traeger on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Traeger or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Kimball International vs. Traeger
Performance |
| Timeline |
| Kimball International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Traeger |
Kimball International and Traeger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball International and Traeger
The main advantage of trading using opposite Kimball International and Traeger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball International position performs unexpectedly, Traeger 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 Traeger will offset losses from the drop in Traeger's long position.| Kimball International vs. Kimball Electronics | Kimball International vs. Interface | Kimball International vs. James River Group | Kimball International vs. Midland States Bancorp |
| Traeger vs. Viomi Technology ADR | Traeger vs. Energy Focu | Traeger vs. Flexsteel Industries | Traeger vs. Ethan Allen Interiors |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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