Correlation Between Kimball Electronics and Ozop Surgical

Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Ozop Surgical 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 Ozop Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kimball Electronics and Ozop Surgical Corp, you can compare the effects of market volatilities on Kimball Electronics and Ozop Surgical 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 Ozop Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Ozop Surgical.

Diversification Opportunities for Kimball Electronics and Ozop Surgical

0.7

Correlation Coefficient

Kimball Electronics  Ozop Surgical

Poor diversification

The 3 months correlation between Kimball and Ozop is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Ozop Surgical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ozop Surgical 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 Ozop Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ozop Surgical Corp has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Ozop Surgical go up and down completely randomly.

Pair Corralation between Kimball Electronics and Ozop Surgical

Allowing for the 90-day total investment horizon Kimball Electronics is expected to under-perform the Ozop Surgical. But the stock apears to be less risky and, when comparing its historical volatility, Kimball Electronics is 11.59 times less risky than Ozop Surgical. The stock trades about -0.09 of its potential returns per unit of risk. The Ozop Surgical Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.07  in Ozop Surgical Corp on December 26, 2024 and sell it today you would lose (0.05) from holding Ozop Surgical Corp or give up 71.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Kimball Electronics  vs.  Ozop Surgical 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. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Ozop Surgical Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ozop Surgical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather fragile basic indicators, Ozop Surgical may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Kimball Electronics and Ozop Surgical

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

The idea behind Kimball Electronics and Ozop Surgical 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..