Correlation Between Bloom Energy and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Bloom Energy 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 Bloom Energy and KIMBALL ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloom Energy and KIMBALL ELECTRONICS, you can compare the effects of market volatilities on Bloom Energy 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 Bloom Energy with a short position of KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and KIMBALL ELECTRONICS.
Diversification Opportunities for Bloom Energy and KIMBALL ELECTRONICS
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bloom and KIMBALL is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS and Bloom Energy 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 Bloom Energy 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 Bloom Energy i.e., Bloom Energy and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between Bloom Energy and KIMBALL ELECTRONICS
Assuming the 90 days horizon Bloom Energy is expected to generate 4.13 times more return on investment than KIMBALL ELECTRONICS. However, Bloom Energy is 4.13 times more volatile than KIMBALL ELECTRONICS. It trades about 0.34 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about 0.12 per unit of risk. If you would invest 866.00 in Bloom Energy on August 25, 2024 and sell it today you would earn a total of 1,634 from holding Bloom Energy or generate 188.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| Bloom Energy |
| KIMBALL ELECTRONICS |
Bloom Energy and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and KIMBALL ELECTRONICS
The main advantage of trading using opposite Bloom Energy and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy 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's long position.| Bloom Energy vs. Grupo Carso SAB | Bloom Energy vs. Cars Inc | Bloom Energy vs. Commercial Vehicle Group | Bloom Energy vs. Motorcar Parts of |
| KIMBALL ELECTRONICS vs. YASKAWA ELEC UNSP | KIMBALL ELECTRONICS vs. Varta AG | KIMBALL ELECTRONICS vs. OSRAM LICHT N | KIMBALL ELECTRONICS vs. Bloom Energy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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