Correlation Between Kimball Electronics and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and CBAK Energy 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 CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and CBAK Energy Technology, you can compare the effects of market volatilities on Kimball Electronics and CBAK Energy 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 CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and CBAK Energy.
Diversification Opportunities for Kimball Electronics and CBAK Energy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimball and CBAK is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology 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 CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and CBAK Energy go up and down completely randomly.
Pair Corralation between Kimball Electronics and CBAK Energy
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 0.71 times more return on investment than CBAK Energy. However, Kimball Electronics is 1.42 times less risky than CBAK Energy. It trades about 0.12 of its potential returns per unit of risk. CBAK Energy Technology is currently generating about -0.19 per unit of risk. If you would invest 1,815 in Kimball Electronics on August 28, 2024 and sell it today you would earn a total of 119.00 from holding Kimball Electronics or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimball Electronics vs. CBAK Energy Technology
Performance |
| Timeline |
| Kimball Electronics |
| CBAK Energy Technology |
Kimball Electronics and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and CBAK Energy
The main advantage of trading using opposite Kimball Electronics and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |