Correlation Between Sunrise New and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both Sunrise New 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 Sunrise New and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrise New Energy and Kimball Electronics, you can compare the effects of market volatilities on Sunrise New 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 Sunrise New with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrise New and Kimball Electronics.
Diversification Opportunities for Sunrise New and Kimball Electronics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunrise and Kimball is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sunrise New Energy and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Sunrise New 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 Sunrise New 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 Sunrise New i.e., Sunrise New and Kimball Electronics go up and down completely randomly.
Pair Corralation between Sunrise New and Kimball Electronics
Given the investment horizon of 90 days Sunrise New Energy is expected to generate 2.04 times more return on investment than Kimball Electronics. However, Sunrise New is 2.04 times more volatile than Kimball Electronics. It trades about 0.21 of its potential returns per unit of risk. Kimball Electronics is currently generating about -0.29 per unit of risk. If you would invest 86.00 in Sunrise New Energy on November 18, 2024 and sell it today you would earn a total of 14.00 from holding Sunrise New Energy or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrise New Energy vs. Kimball Electronics
Performance |
| Timeline |
| Sunrise New Energy |
| Kimball Electronics |
Sunrise New and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrise New and Kimball Electronics
The main advantage of trading using opposite Sunrise New and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrise New 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.| Sunrise New vs. Espey Mfg Electronics | Sunrise New vs. NeoVolta Warrant | Sunrise New vs. Kimball Electronics | Sunrise New vs. Hayward Holdings |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |