Correlation Between Kimball International and TPX Old
Can any of the company-specific risk be diversified away by investing in both Kimball International and TPX Old 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 TPX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball International and TPX Old, you can compare the effects of market volatilities on Kimball International and TPX Old 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 TPX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball International and TPX Old.
Diversification Opportunities for Kimball International and TPX Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kimball and TPX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kimball International and TPX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPX Old 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 TPX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPX Old has no effect on the direction of Kimball International i.e., Kimball International and TPX Old go up and down completely randomly.
Pair Corralation between Kimball International and TPX Old
If you would invest 5,698 in TPX Old on December 28, 2024 and sell it today you would earn a total of 1,180 from holding TPX Old or generate 20.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Kimball International vs. TPX Old
Performance |
Timeline |
Kimball International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
TPX Old |
Risk-Adjusted Performance
Solid
Weak | Strong |
Kimball International and TPX Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kimball International and TPX Old
The main advantage of trading using opposite Kimball International and TPX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball International position performs unexpectedly, TPX Old 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 TPX Old will offset losses from the drop in TPX Old's long position.Kimball International vs. Kimball Electronics | Kimball International vs. Interface | Kimball International vs. James River Group | Kimball International vs. Midland States Bancorp |
TPX Old vs. La Z Boy Incorporated | TPX Old vs. Purple Innovation | TPX Old vs. MasterBrand | TPX Old vs. Ethan Allen Interiors |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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