Correlation Between NH HOTEL and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both NH 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 NH 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 NH HOTEL GROUP and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on NH 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 NH HOTEL with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH HOTEL and KIMBALL ELECTRONICS.
Diversification Opportunities for NH HOTEL and KIMBALL ELECTRONICS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NH5 and KIMBALL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NH HOTEL GROUP and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and NH 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 NH HOTEL GROUP 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 NH HOTEL i.e., NH HOTEL and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between NH HOTEL and KIMBALL ELECTRONICS
If you would invest 308.00 in NH HOTEL GROUP on August 27, 2024 and sell it today you would earn a total of 104.00 from holding NH HOTEL GROUP or generate 33.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH HOTEL GROUP vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| NH HOTEL GROUP |
| KIMBALL ELECTRONICS |
NH HOTEL and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH HOTEL and KIMBALL ELECTRONICS
The main advantage of trading using opposite NH HOTEL and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH 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.| NH HOTEL vs. WIMFARM SA EO | NH HOTEL vs. TreeHouse Foods | NH HOTEL vs. Cal Maine Foods | NH HOTEL vs. Astral Foods Limited |
| KIMBALL ELECTRONICS vs. Pure Storage | KIMBALL ELECTRONICS vs. Automatic Data Processing | KIMBALL ELECTRONICS vs. PUBLIC STORAGE PRFO | KIMBALL ELECTRONICS vs. Zijin Mining 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |