Correlation Between ZINC MEDIA and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both ZINC MEDIA 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 ZINC MEDIA and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZINC MEDIA GR and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on ZINC MEDIA 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 ZINC MEDIA with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINC MEDIA and KIMBALL ELECTRONICS.
Diversification Opportunities for ZINC MEDIA and KIMBALL ELECTRONICS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZINC and KIMBALL is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ZINC MEDIA GR and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and ZINC MEDIA 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 ZINC MEDIA GR 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 ZINC MEDIA i.e., ZINC MEDIA and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between ZINC MEDIA and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon ZINC MEDIA GR is expected to generate 2.03 times more return on investment than KIMBALL ELECTRONICS. However, ZINC MEDIA is 2.03 times more volatile than KIMBALL ELECTRONICS. It trades about 0.25 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about 0.01 per unit of risk. If you would invest 56.00 in ZINC MEDIA GR on October 28, 2024 and sell it today you would earn a total of 7.00 from holding ZINC MEDIA GR or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZINC MEDIA GR vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| ZINC MEDIA GR |
| KIMBALL ELECTRONICS |
ZINC MEDIA and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZINC MEDIA and KIMBALL ELECTRONICS
The main advantage of trading using opposite ZINC MEDIA and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINC MEDIA 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.| ZINC MEDIA vs. Zoom Video Communications | ZINC MEDIA vs. Luckin Coffee | ZINC MEDIA vs. Chesapeake Utilities | ZINC MEDIA vs. Algonquin Power Utilities |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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