Correlation Between Kimball Electronics and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Electrovaya Common 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 Electrovaya Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Electrovaya Common Shares, you can compare the effects of market volatilities on Kimball Electronics and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Electrovaya Common.
Diversification Opportunities for Kimball Electronics and Electrovaya Common
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kimball and Electrovaya is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Electrovaya Common go up and down completely randomly.
Pair Corralation between Kimball Electronics and Electrovaya Common
Allowing for the 90-day total investment horizon Kimball Electronics is expected to under-perform the Electrovaya Common. But the stock apears to be less risky and, when comparing its historical volatility, Kimball Electronics is 2.12 times less risky than Electrovaya Common. The stock trades about -0.14 of its potential returns per unit of risk. The Electrovaya Common Shares is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Electrovaya Common Shares on November 9, 2024 and sell it today you would lose (1.00) from holding Electrovaya Common Shares or give up 0.4% 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. Electrovaya Common Shares
Performance |
| Timeline |
| Kimball Electronics |
| Electrovaya Common Shares |
Kimball Electronics and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and Electrovaya Common
The main advantage of trading using opposite Kimball Electronics and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
| Electrovaya Common vs. BRP Inc | Electrovaya Common vs. ArcelorMittal SA ADR | Electrovaya Common vs. CECO Environmental Corp | Electrovaya Common vs. Allegheny Technologies Incorporated |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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