Correlation Between KIMBALL ELECTRONICS and Brown-Forman Corp

Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and Brown-Forman Corp 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 Brown-Forman Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KIMBALL ELECTRONICS and Brown Forman Corp, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and Brown-Forman Corp 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 Brown-Forman Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and Brown-Forman Corp.

Diversification Opportunities for KIMBALL ELECTRONICS and Brown-Forman Corp

0.0

Correlation Coefficient

KIMBALL ELECTRONICS  Brown-Forman Corp

Pay attention - limited upside

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

Pair Corralation between KIMBALL ELECTRONICS and Brown-Forman Corp

If you would invest (100.00) in Brown Forman Corp on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Brown Forman Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

KIMBALL ELECTRONICS  vs.  Brown Forman Corp

KIMBALL ELECTRONICS

Risk-Adjusted Performance

Very Weak

Over the last 90 days KIMBALL ELECTRONICS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Brown Forman Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brown Forman Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Brown-Forman Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with KIMBALL ELECTRONICS and Brown-Forman Corp

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

The idea behind KIMBALL ELECTRONICS and Brown Forman Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.