Correlation Between Rogers Communications and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Rogers Communications 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 Rogers Communications and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogers Communications and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on Rogers Communications 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 Rogers Communications with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers Communications and KIMBALL ELECTRONICS.
Diversification Opportunities for Rogers Communications and KIMBALL ELECTRONICS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rogers and KIMBALL is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and Rogers Communications 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 Rogers Communications 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 Rogers Communications i.e., Rogers Communications and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between Rogers Communications and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.96 times more return on investment than KIMBALL ELECTRONICS. However, Rogers Communications is 1.04 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 -0.13 per unit of risk. If you would invest 2,700 in Rogers Communications on November 27, 2024 and sell it today you would lose (20.00) from holding Rogers Communications or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rogers Communications vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| Rogers Communications |
| KIMBALL ELECTRONICS |
Rogers Communications and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogers Communications and KIMBALL ELECTRONICS
The main advantage of trading using opposite Rogers Communications and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers Communications 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.| Rogers Communications vs. Perseus Mining Limited | Rogers Communications vs. Coeur Mining | Rogers Communications vs. Yuexiu Transport Infrastructure | Rogers Communications vs. Fukuyama Transporting Co |
| KIMBALL ELECTRONICS vs. Ultra Clean Holdings | KIMBALL ELECTRONICS vs. Carnegie Clean Energy | KIMBALL ELECTRONICS vs. MYFAIR GOLD P | KIMBALL ELECTRONICS vs. AUST AGRICULTURAL |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |