Correlation Between Kimball International and Ennis
Can any of the company-specific risk be diversified away by investing in both Kimball International and Ennis 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 Kimball International and Ennis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball International and Ennis Inc, you can compare the effects of market volatilities on Kimball International and Ennis 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 Kimball International with a short position of Ennis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball International and Ennis.
Diversification Opportunities for Kimball International and Ennis
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kimball and Ennis is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kimball International and Ennis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ennis Inc and Kimball International 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 Kimball International are associated (or correlated) with Ennis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ennis Inc has no effect on the direction of Kimball International i.e., Kimball International and Ennis go up and down completely randomly.
Pair Corralation between Kimball International and Ennis
If you would invest 1,230 in Kimball International on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Kimball International or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Kimball International vs. Ennis Inc
Performance |
Timeline |
Kimball International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ennis Inc |
Kimball International and Ennis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kimball International and Ennis
The main advantage of trading using opposite Kimball International and Ennis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball International position performs unexpectedly, Ennis 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 Ennis will offset losses from the drop in Ennis' long position.Kimball International vs. Kimball Electronics | Kimball International vs. Interface | Kimball International vs. James River Group | Kimball International vs. Lakeland Bancorp |
Ennis vs. Acco Brands | Ennis vs. Acacia Research | Ennis vs. International Paper | Ennis vs. Virco Manufacturing |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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