Correlation Between Enersys and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both Enersys 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 Enersys and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enersys and Kimball Electronics, you can compare the effects of market volatilities on Enersys 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 Enersys with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enersys and Kimball Electronics.
Diversification Opportunities for Enersys and Kimball Electronics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enersys and Kimball is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Enersys and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Enersys 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 Enersys 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 Enersys i.e., Enersys and Kimball Electronics go up and down completely randomly.
Pair Corralation between Enersys and Kimball Electronics
Considering the 90-day investment horizon Enersys is expected to generate 0.71 times more return on investment than Kimball Electronics. However, Enersys is 1.41 times less risky than Kimball Electronics. It trades about -0.05 of its potential returns per unit of risk. Kimball Electronics is currently generating about -0.04 per unit of risk. If you would invest 10,695 in Enersys on August 24, 2024 and sell it today you would lose (1,191) from holding Enersys or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enersys vs. Kimball Electronics
Performance |
| Timeline |
| Enersys |
| Kimball Electronics |
Enersys and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enersys and Kimball Electronics
The main advantage of trading using opposite Enersys and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enersys 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.| Enersys vs. Advanced Energy Industries | Enersys vs. Hubbell | Enersys vs. Acuity Brands | Enersys vs. Kimball Electronics |
| Kimball Electronics vs. MKS Instruments | Kimball Electronics vs. Axcelis Technologies | Kimball Electronics vs. Entegris | Kimball Electronics vs. Cohu Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |