Correlation Between KIMBALL ELECTRONICS and Capgemini
Can any of the company-specific risk be diversified away by investing in both KIMBALL ELECTRONICS and Capgemini 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 Capgemini into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIMBALL ELECTRONICS and Capgemini SE, you can compare the effects of market volatilities on KIMBALL ELECTRONICS and Capgemini 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 Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBALL ELECTRONICS and Capgemini.
Diversification Opportunities for KIMBALL ELECTRONICS and Capgemini
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KIMBALL and Capgemini is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding KIMBALL ELECTRONICS and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE 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 Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of KIMBALL ELECTRONICS i.e., KIMBALL ELECTRONICS and Capgemini go up and down completely randomly.
Pair Corralation between KIMBALL ELECTRONICS and Capgemini
Assuming the 90 days horizon KIMBALL ELECTRONICS is expected to under-perform the Capgemini. But the stock apears to be less risky and, when comparing its historical volatility, KIMBALL ELECTRONICS is 1.07 times less risky than Capgemini. The stock trades about -0.06 of its potential returns per unit of risk. The Capgemini SE is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 14,980 in Capgemini SE on December 2, 2024 and sell it today you would lose (40.00) from holding Capgemini SE or give up 0.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
KIMBALL ELECTRONICS vs. Capgemini SE
Performance |
Timeline |
KIMBALL ELECTRONICS |
Capgemini SE |
KIMBALL ELECTRONICS and Capgemini Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KIMBALL ELECTRONICS and Capgemini
The main advantage of trading using opposite KIMBALL ELECTRONICS and Capgemini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBALL ELECTRONICS position performs unexpectedly, Capgemini 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 Capgemini will offset losses from the drop in Capgemini's long position.KIMBALL ELECTRONICS vs. Molson Coors Beverage | KIMBALL ELECTRONICS vs. Summit Hotel Properties | KIMBALL ELECTRONICS vs. Dalata Hotel Group | KIMBALL ELECTRONICS vs. EMPEROR ENT HOTEL |
Capgemini vs. Kingdee International Software | Capgemini vs. Hastings Technology Metals | Capgemini vs. UNITED RENTALS | Capgemini vs. Easy Software AG |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |