Correlation Between Kimball International and Knoll

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Can any of the company-specific risk be diversified away by investing in both Kimball International and Knoll 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 Knoll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball International and Knoll Inc, you can compare the effects of market volatilities on Kimball International and Knoll 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 Knoll. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball International and Knoll.

Diversification Opportunities for Kimball International and Knoll

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kimball and Knoll is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kimball International and Knoll Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knoll 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 Knoll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knoll Inc has no effect on the direction of Kimball International i.e., Kimball International and Knoll go up and down completely randomly.

Pair Corralation between Kimball International and Knoll

If you would invest (100.00) in Knoll Inc on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Knoll Inc or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Kimball International  vs.  Knoll Inc

 Performance 
       Timeline  
Kimball International 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Kimball International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Kimball International is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.
Knoll Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Knoll Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Knoll is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Kimball International and Knoll Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kimball International and Knoll

The main advantage of trading using opposite Kimball International and Knoll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball International position performs unexpectedly, Knoll 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 Knoll will offset losses from the drop in Knoll's long position.
The idea behind Kimball International and Knoll Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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