Correlation Between Eos Energy and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both Eos 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 Eos 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 Eos Energy Enterprises and Kimball Electronics, you can compare the effects of market volatilities on Eos 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 Eos Energy with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Kimball Electronics.
Diversification Opportunities for Eos Energy and Kimball Electronics
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eos and Kimball is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Eos 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 Eos Energy Enterprises 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 Eos Energy i.e., Eos Energy and Kimball Electronics go up and down completely randomly.
Pair Corralation between Eos Energy and Kimball Electronics
Given the investment horizon of 90 days Eos Energy Enterprises is expected to under-perform the Kimball Electronics. In addition to that, Eos Energy is 2.6 times more volatile than Kimball Electronics. It trades about -0.1 of its total potential returns per unit of risk. Kimball Electronics is currently generating about 0.17 per unit of volatility. If you would invest 1,815 in Kimball Electronics on August 28, 2024 and sell it today you would earn a total of 178.00 from holding Kimball Electronics or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Kimball Electronics
Performance |
| Timeline |
| Eos Energy Enterprises |
| Kimball Electronics |
Eos Energy and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Kimball Electronics
The main advantage of trading using opposite Eos Energy and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos 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' long position.| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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