Correlation Between KIMBALL ELECTRONICS and SUN ART
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and SUN ART 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 ELECTRONICS and SUN ART into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and SUN ART RETAIL, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and SUN ART 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 ELECTRONICS with a short position of SUN ART. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and SUN ART.
Diversification Opportunities for KIMBALL ELECTRONICS and SUN ART
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KIMBALL and SUN is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and SUN ART RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN ART RETAIL and KIMBALL ELECTRONICS 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 ELECTRONICS are associated (or correlated) with SUN ART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN ART RETAIL has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and SUN ART go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and SUN ART
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to generate 1.71 times less return on investment than SUN ART. In addition to that, KIMBALL ELECTRONICS is 1.21 times more volatile than SUN ART RETAIL. It trades about 0.04 of its total potential returns per unit of risk. SUN ART RETAIL is currently generating about 0.08 per unit of volatility. If you would invest 21.00 in SUN ART RETAIL on April 20, 2025 and sell it today you would earn a total of 4.00 from holding SUN ART RETAIL or generate 19.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
KIMBALL ELECTRONICS vs. SUN ART RETAIL
Performance |
Timeline |
KIMBALL ELECTRONICS |
SUN ART RETAIL |
KIMBALL ELECTRONICS and SUN ART Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KIMBALL ELECTRONICS and SUN ART
The main advantage of trading using opposite KIMBALL ELECTRONICS and SUN ART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, SUN ART 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 SUN ART will offset losses from the drop in SUN ART's long position.KIMBALL ELECTRONICS vs. Aristocrat Leisure Limited | KIMBALL ELECTRONICS vs. SIEM OFFSHORE NEW | KIMBALL ELECTRONICS vs. ePlay Digital | KIMBALL ELECTRONICS vs. Zoom Video Communications |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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