Correlation Between Kimball Electronics and Intellicheck Mobilisa
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Intellicheck Mobilisa 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 Electronics and Intellicheck Mobilisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Intellicheck Mobilisa, you can compare the effects of market volatilities on Kimball Electronics and Intellicheck Mobilisa 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 Electronics with a short position of Intellicheck Mobilisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Intellicheck Mobilisa.
Diversification Opportunities for Kimball Electronics and Intellicheck Mobilisa
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimball and Intellicheck is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and Kimball Electronics 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 Electronics are associated (or correlated) with Intellicheck Mobilisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellicheck Mobilisa has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Intellicheck Mobilisa go up and down completely randomly.
Pair Corralation between Kimball Electronics and Intellicheck Mobilisa
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 0.44 times more return on investment than Intellicheck Mobilisa. However, Kimball Electronics is 2.26 times less risky than Intellicheck Mobilisa. It trades about -0.03 of its potential returns per unit of risk. Intellicheck Mobilisa is currently generating about -0.03 per unit of risk. If you would invest 2,197 in Kimball Electronics on September 2, 2024 and sell it today you would lose (236.00) from holding Kimball Electronics or give up 10.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimball Electronics vs. Intellicheck Mobilisa
Performance |
| Timeline |
| Kimball Electronics |
| Intellicheck Mobilisa |
Kimball Electronics and Intellicheck Mobilisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and Intellicheck Mobilisa
The main advantage of trading using opposite Kimball Electronics and Intellicheck Mobilisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, Intellicheck Mobilisa 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 Intellicheck Mobilisa will offset losses from the drop in Intellicheck Mobilisa's long position.| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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