Correlation Between Kimball Electronics and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and AmpliTech 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 Kimball Electronics and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and AmpliTech Group, you can compare the effects of market volatilities on Kimball Electronics and AmpliTech 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 Kimball Electronics with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and AmpliTech.
Diversification Opportunities for Kimball Electronics and AmpliTech
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimball and AmpliTech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Kimball Electronics 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 Kimball Electronics are associated (or correlated) with AmpliTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmpliTech Group has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and AmpliTech go up and down completely randomly.
Pair Corralation between Kimball Electronics and AmpliTech
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 12.2 times less return on investment than AmpliTech. But when comparing it to its historical volatility, Kimball Electronics is 16.48 times less risky than AmpliTech. It trades about 0.18 of its potential returns per unit of risk. AmpliTech Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3.20 in AmpliTech Group on September 1, 2024 and sell it today you would lose (0.01) from holding AmpliTech Group or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimball Electronics vs. AmpliTech Group
Performance |
| Timeline |
| Kimball Electronics |
| AmpliTech Group |
Kimball Electronics and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and AmpliTech
The main advantage of trading using opposite Kimball Electronics and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, AmpliTech 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 AmpliTech will offset losses from the drop in AmpliTech's long position.| Kimball Electronics vs. Desktop Metal | Kimball Electronics vs. Fabrinet | Kimball Electronics vs. Knowles Cor | Kimball Electronics vs. Ubiquiti Networks |
| AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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