Correlation Between Verisk Analytics and Kimball Electronics

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Can any of the company-specific risk be diversified away by investing in both Verisk Analytics and Kimball Electronics 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 Verisk Analytics and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verisk Analytics and Kimball Electronics, you can compare the effects of market volatilities on Verisk Analytics and Kimball Electronics 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 Verisk Analytics with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verisk Analytics and Kimball Electronics.

Diversification Opportunities for Verisk Analytics and Kimball Electronics

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Verisk and Kimball is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Verisk Analytics and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Verisk Analytics 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 Verisk Analytics are associated (or correlated) with Kimball Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimball Electronics has no effect on the direction of Verisk Analytics i.e., Verisk Analytics and Kimball Electronics go up and down completely randomly.

Pair Corralation between Verisk Analytics and Kimball Electronics

Given the investment horizon of 90 days Verisk Analytics is expected to under-perform the Kimball Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Verisk Analytics is 1.29 times less risky than Kimball Electronics. The stock trades about -0.14 of its potential returns per unit of risk. The Kimball Electronics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  3,034  in Kimball Electronics on September 10, 2025 and sell it today you would lose (48.00) from holding Kimball Electronics or give up 1.58% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Verisk Analytics  vs.  Kimball Electronics

 Performance 
       Timeline  
Verisk Analytics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Verisk Analytics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Kimball Electronics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Kimball Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Kimball Electronics is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Verisk Analytics and Kimball Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Verisk Analytics and Kimball Electronics

The main advantage of trading using opposite Verisk Analytics and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verisk Analytics position performs unexpectedly, Kimball Electronics 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 Kimball Electronics will offset losses from the drop in Kimball Electronics' long position.
The idea behind Verisk Analytics and Kimball Electronics 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.
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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