Correlation Between REGAL HOTEL and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both REGAL 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 REGAL 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 REGAL HOTEL INTL and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on REGAL 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 REGAL HOTEL with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL HOTEL and KIMBALL ELECTRONICS.
Diversification Opportunities for REGAL HOTEL and KIMBALL ELECTRONICS
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REGAL and KIMBALL is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding REGAL HOTEL INTL and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and REGAL 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 REGAL HOTEL INTL 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 REGAL HOTEL i.e., REGAL HOTEL and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between REGAL HOTEL and KIMBALL ELECTRONICS
If you would invest 30.00 in REGAL HOTEL INTL on August 27, 2024 and sell it today you would lose (1.00) from holding REGAL HOTEL INTL or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL HOTEL INTL vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| REGAL HOTEL INTL |
| KIMBALL ELECTRONICS |
REGAL HOTEL and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL HOTEL and KIMBALL ELECTRONICS
The main advantage of trading using opposite REGAL HOTEL and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL 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.| REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Microsoft |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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