Correlation Between KIMBALL ELECTRONICS and Wheaton Precious

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

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

Diversification Opportunities for KIMBALL ELECTRONICS and Wheaton Precious

0.0

Correlation Coefficient

KIMBALL ELECTRONICS  Wheaton Precious

Pay attention - limited upside

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

Pair Corralation between KIMBALL ELECTRONICS and Wheaton Precious

If you would invest  1,550  in KIMBALL ELECTRONICS on October 4, 2024 and sell it today you would earn a total of  220.00  from holding KIMBALL ELECTRONICS or generate 14.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

KIMBALL ELECTRONICS  vs.  Wheaton Precious Metals

KIMBALL ELECTRONICS

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KIMBALL ELECTRONICS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, KIMBALL ELECTRONICS reported solid returns over the last few months and may actually be approaching a breakup point.

Wheaton Precious Metals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wheaton Precious Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Wheaton Precious is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with KIMBALL ELECTRONICS and Wheaton Precious

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

The idea behind KIMBALL ELECTRONICS and Wheaton Precious Metals 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.