Correlation Between Lovesac and Kimball International
Can any of the company-specific risk be diversified away by investing in both Lovesac 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 Lovesac and Kimball International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Lovesac and Kimball International, you can compare the effects of market volatilities on Lovesac 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 Lovesac with a short position of Kimball International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lovesac and Kimball International.
Diversification Opportunities for Lovesac and Kimball International
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lovesac and Kimball is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding The Lovesac and Kimball International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball International and Lovesac 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 The Lovesac 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 Lovesac i.e., Lovesac and Kimball International go up and down completely randomly.
Pair Corralation between Lovesac and Kimball International
If you would invest 2,286 in The Lovesac on August 27, 2024 and sell it today you would earn a total of 1,185 from holding The Lovesac or generate 51.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.07% |
| Values | Daily Returns |
The Lovesac vs. Kimball International
Performance |
| Timeline |
| Lovesac |
| Kimball International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lovesac and Kimball International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lovesac and Kimball International
The main advantage of trading using opposite Lovesac and Kimball International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lovesac 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.| Lovesac vs. Tempur Sealy International | Lovesac vs. La Z Boy Incorporated | Lovesac vs. Purple Innovation | Lovesac vs. MasterBrand |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |