Correlation Between Kimball Electronics and ClearSign Combustion
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and ClearSign Combustion 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 ClearSign Combustion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and ClearSign Combustion, you can compare the effects of market volatilities on Kimball Electronics and ClearSign Combustion 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 ClearSign Combustion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and ClearSign Combustion.
Diversification Opportunities for Kimball Electronics and ClearSign Combustion
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kimball and ClearSign is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and ClearSign Combustion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearSign Combustion 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 ClearSign Combustion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearSign Combustion has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and ClearSign Combustion go up and down completely randomly.
Pair Corralation between Kimball Electronics and ClearSign Combustion
Allowing for the 90-day total investment horizon Kimball Electronics is expected to under-perform the ClearSign Combustion. But the stock apears to be less risky and, when comparing its historical volatility, Kimball Electronics is 3.39 times less risky than ClearSign Combustion. The stock trades about -0.19 of its potential returns per unit of risk. The ClearSign Combustion is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 90.00 in ClearSign Combustion on September 12, 2024 and sell it today you would earn a total of 26.00 from holding ClearSign Combustion or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kimball Electronics vs. ClearSign Combustion
Performance |
| Timeline |
| Kimball Electronics |
| ClearSign Combustion |
Kimball Electronics and ClearSign Combustion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and ClearSign Combustion
The main advantage of trading using opposite Kimball Electronics and ClearSign Combustion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, ClearSign Combustion 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 ClearSign Combustion will offset losses from the drop in ClearSign Combustion's long position.| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
| ClearSign Combustion vs. Urban One Class | ClearSign Combustion vs. Broadway Financial | ClearSign Combustion vs. Ideal Power | ClearSign Combustion vs. Carver Bancorp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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