Correlation Between MillerKnoll and Planet Image
Can any of the company-specific risk be diversified away by investing in both MillerKnoll and Planet Image 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 MillerKnoll and Planet Image into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MillerKnoll and Planet Image International, you can compare the effects of market volatilities on MillerKnoll and Planet Image 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 MillerKnoll with a short position of Planet Image. Check out your portfolio center. Please also check ongoing floating volatility patterns of MillerKnoll and Planet Image.
Diversification Opportunities for MillerKnoll and Planet Image
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MillerKnoll and Planet is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding MillerKnoll and Planet Image International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Image Interna and MillerKnoll 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 MillerKnoll are associated (or correlated) with Planet Image. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Image Interna has no effect on the direction of MillerKnoll i.e., MillerKnoll and Planet Image go up and down completely randomly.
Pair Corralation between MillerKnoll and Planet Image
Given the investment horizon of 90 days MillerKnoll is expected to generate 1.39 times less return on investment than Planet Image. But when comparing it to its historical volatility, MillerKnoll is 2.29 times less risky than Planet Image. It trades about 0.19 of its potential returns per unit of risk. Planet Image International is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 297.00 in Planet Image International on August 28, 2024 and sell it today you would earn a total of 29.00 from holding Planet Image International or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MillerKnoll vs. Planet Image International
Performance |
| Timeline |
| MillerKnoll |
| Planet Image Interna |
MillerKnoll and Planet Image Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MillerKnoll and Planet Image
The main advantage of trading using opposite MillerKnoll and Planet Image positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MillerKnoll position performs unexpectedly, Planet Image 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 Planet Image will offset losses from the drop in Planet Image's long position.| MillerKnoll vs. Bassett Furniture Industries | MillerKnoll vs. Ethan Allen Interiors | MillerKnoll vs. Natuzzi SpA | MillerKnoll vs. Flexsteel Industries |
| Planet Image vs. JetBlue Airways Corp | Planet Image vs. NH Foods Ltd | Planet Image vs. Bridgford Foods | Planet Image vs. Mesa Air Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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