Correlation Between MIRAMAR HOTEL and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and KIMBALL ELECTRONICS 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 MIRAMAR HOTEL and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIRAMAR HOTEL INV and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on MIRAMAR HOTEL and KIMBALL ELECTRONICS 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 MIRAMAR HOTEL with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and KIMBALL ELECTRONICS.
Diversification Opportunities for MIRAMAR HOTEL and KIMBALL ELECTRONICS
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MIRAMAR and KIMBALL is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and MIRAMAR HOTEL 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 MIRAMAR HOTEL INV are associated (or correlated) with KIMBALL ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBALL ELECTRONICS has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon MIRAMAR HOTEL is expected to generate 349.18 times less return on investment than KIMBALL ELECTRONICS. But when comparing it to its historical volatility, MIRAMAR HOTEL INV is 6.97 times less risky than KIMBALL ELECTRONICS. It trades about 0.0 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,670 in KIMBALL ELECTRONICS on August 30, 2024 and sell it today you would earn a total of 210.00 from holding KIMBALL ELECTRONICS or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIRAMAR HOTEL INV vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| KIMBALL ELECTRONICS |
MIRAMAR HOTEL and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and KIMBALL ELECTRONICS
The main advantage of trading using opposite MIRAMAR HOTEL and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, KIMBALL ELECTRONICS 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 ELECTRONICS will offset losses from the drop in KIMBALL ELECTRONICS's long position.| MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Superior Plus Corp | MIRAMAR HOTEL vs. SIVERS SEMICONDUCTORS AB |
| KIMBALL ELECTRONICS vs. Superior Plus Corp | KIMBALL ELECTRONICS vs. SIVERS SEMICONDUCTORS AB | KIMBALL ELECTRONICS vs. Talanx AG | KIMBALL ELECTRONICS vs. 2G ENERGY |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |