Correlation Between Kimball International and Lifetime Brands
Can any of the company-specific risk be diversified away by investing in both Kimball International and Lifetime Brands 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 Lifetime Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball International and Lifetime Brands, you can compare the effects of market volatilities on Kimball International and Lifetime Brands 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 Lifetime Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball International and Lifetime Brands.
Diversification Opportunities for Kimball International and Lifetime Brands
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimball and Lifetime is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kimball International and Lifetime Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifetime Brands 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 Lifetime Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifetime Brands has no effect on the direction of Kimball International i.e., Kimball International and Lifetime Brands go up and down completely randomly.
Pair Corralation between Kimball International and Lifetime Brands
If you would invest 571.00 in Lifetime Brands on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Lifetime Brands or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kimball International vs. Lifetime Brands
Performance |
| Timeline |
| Kimball International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lifetime Brands |
Kimball International and Lifetime Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball International and Lifetime Brands
The main advantage of trading using opposite Kimball International and Lifetime Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball International position performs unexpectedly, Lifetime Brands 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 Lifetime Brands will offset losses from the drop in Lifetime Brands' long position.| Kimball International vs. Kimball Electronics | Kimball International vs. Interface | Kimball International vs. James River Group | Kimball International vs. Midland States Bancorp |
| Lifetime Brands vs. Bassett Furniture Industries | Lifetime Brands vs. Flexsteel Industries | Lifetime Brands vs. Hamilton Beach Brands | Lifetime Brands vs. Natuzzi SpA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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