Correlation Between Kimball Electronics and Tritium Dcfc
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Tritium Dcfc 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 Tritium Dcfc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Tritium Dcfc, you can compare the effects of market volatilities on Kimball Electronics and Tritium Dcfc 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 Tritium Dcfc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Tritium Dcfc.
Diversification Opportunities for Kimball Electronics and Tritium Dcfc
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimball and Tritium is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Tritium Dcfc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tritium Dcfc 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 Tritium Dcfc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tritium Dcfc has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Tritium Dcfc go up and down completely randomly.
Pair Corralation between Kimball Electronics and Tritium Dcfc
Allowing for the 90-day total investment horizon Kimball Electronics is expected to under-perform the Tritium Dcfc. But the stock apears to be less risky and, when comparing its historical volatility, Kimball Electronics is 30.36 times less risky than Tritium Dcfc. The stock trades about -0.05 of its potential returns per unit of risk. The Tritium Dcfc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1.58 in Tritium Dcfc on November 2, 2024 and sell it today you would earn a total of 1.42 from holding Tritium Dcfc or generate 89.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimball Electronics vs. Tritium Dcfc
Performance |
| Timeline |
| Kimball Electronics |
| Tritium Dcfc |
Kimball Electronics and Tritium Dcfc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and Tritium Dcfc
The main advantage of trading using opposite Kimball Electronics and Tritium Dcfc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, Tritium Dcfc 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 Tritium Dcfc will offset losses from the drop in Tritium Dcfc's long position.| Kimball Electronics vs. Rigetti Computing | Kimball Electronics vs. IONQ WT | Kimball Electronics vs. Arqit Quantum Warrants | Kimball Electronics vs. QBTS WT |
| Tritium Dcfc vs. Microvast Holdings | Tritium Dcfc vs. FREYR Battery SA | Tritium Dcfc vs. Bloom Energy Corp | Tritium Dcfc vs. Enovix Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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