Correlation Between Kimball International and Joann

Can any of the company-specific risk be diversified away by investing in both Kimball International and Joann 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 Joann into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kimball International and Joann Inc, you can compare the effects of market volatilities on Kimball International and Joann 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 Joann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball International and Joann.

Diversification Opportunities for Kimball International and Joann

-0.2

Correlation Coefficient

Kimball International  Joann

Good diversification

The 3 months correlation between Kimball and Joann is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kimball International and Joann Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joann 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 Joann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joann Inc has no effect on the direction of Kimball International i.e., Kimball International and Joann go up and down completely randomly.

Pair Corralation between Kimball International and Joann

Given the investment horizon of 90 days Kimball International is expected to generate 0.04 times more return on investment than Joann. However, Kimball International is 27.89 times less risky than Joann. It trades about -0.35 of its potential returns per unit of risk. Joann Inc is currently generating about -0.07 per unit of risk. If you would invest  1,241  in Kimball International on January 25, 2024 and sell it today you would lose (11.00) from holding Kimball International or give up 0.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	3.52%
Values	Daily Returns

Kimball International  vs.  Joann Inc

Kimball International

Risk-Adjusted Performance

0 of 100

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 latest stock price mess, may contribute to short-term losses for the institutional investors.

Joann Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Joann Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Kimball International and Joann

The main advantage of trading using opposite Kimball International and Joann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball International position performs unexpectedly, Joann 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 Joann will offset losses from the drop in Joann's long position.

The idea behind Kimball International and Joann 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.