Correlation Between Kimball Electronics and Kimball International
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics 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 Kimball Electronics and Kimball International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Kimball International, you can compare the effects of market volatilities on Kimball Electronics 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 Kimball Electronics with a short position of Kimball International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Kimball International.
Diversification Opportunities for Kimball Electronics and Kimball International
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kimball and Kimball is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Kimball International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball International 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 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 Kimball Electronics i.e., Kimball Electronics and Kimball International go up and down completely randomly.
Pair Corralation between Kimball Electronics and Kimball International
If you would invest 1,230 in Kimball International on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Kimball International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.48% |
| Values | Daily Returns |
Kimball Electronics vs. Kimball International
Performance |
| Timeline |
| Kimball Electronics |
| Kimball International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kimball Electronics and Kimball International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and Kimball International
The main advantage of trading using opposite Kimball Electronics and Kimball International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics 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.| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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