Correlation Between OPERA SOFTWARE and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both OPERA SOFTWARE 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 OPERA SOFTWARE and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPERA SOFTWARE and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on OPERA SOFTWARE 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 OPERA SOFTWARE with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPERA SOFTWARE and KIMBALL ELECTRONICS.
Diversification Opportunities for OPERA SOFTWARE and KIMBALL ELECTRONICS
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between OPERA and KIMBALL is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding OPERA SOFTWARE and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE i.e., OPERA SOFTWARE and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between OPERA SOFTWARE and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon OPERA SOFTWARE is expected to generate 0.84 times more return on investment than KIMBALL ELECTRONICS. However, OPERA SOFTWARE is 1.2 times less risky than KIMBALL ELECTRONICS. It trades about 0.01 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.04 per unit of risk. If you would invest 64.00 in OPERA SOFTWARE on October 12, 2024 and sell it today you would earn a total of 0.00 from holding OPERA SOFTWARE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
OPERA SOFTWARE vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| OPERA SOFTWARE |
| KIMBALL ELECTRONICS |
OPERA SOFTWARE and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPERA SOFTWARE and KIMBALL ELECTRONICS
The main advantage of trading using opposite OPERA SOFTWARE and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPERA SOFTWARE 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.| OPERA SOFTWARE vs. FLOW TRADERS LTD | OPERA SOFTWARE vs. ecotel communication ag | OPERA SOFTWARE vs. MARKET VECTR RETAIL | OPERA SOFTWARE vs. Zoom Video Communications |
| KIMBALL ELECTRONICS vs. Ryanair Holdings plc | KIMBALL ELECTRONICS vs. MAGIC SOFTWARE ENTR | KIMBALL ELECTRONICS vs. OPERA SOFTWARE | KIMBALL ELECTRONICS vs. Alaska 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |