Correlation Between Kimball Electronics and Eos Energy
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Eos 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 Eos 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 Eos Energy Enterprises, you can compare the effects of market volatilities on Kimball Electronics and Eos 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 Eos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Eos Energy.
Diversification Opportunities for Kimball Electronics and Eos Energy
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kimball and Eos is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Eos Energy Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eos Energy Enterprises 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 Eos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eos Energy Enterprises has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Eos Energy go up and down completely randomly.
Pair Corralation between Kimball Electronics and Eos Energy
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 0.39 times more return on investment than Eos Energy. However, Kimball Electronics is 2.58 times less risky than Eos Energy. It trades about 0.18 of its potential returns per unit of risk. Eos Energy Enterprises is currently generating about -0.1 per unit of risk. If you would invest 1,768 in Kimball Electronics on August 24, 2024 and sell it today you would earn a total of 187.00 from holding Kimball Electronics or generate 10.58% 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. Eos Energy Enterprises
Performance |
| Timeline |
| Kimball Electronics |
| Eos Energy Enterprises |
Kimball Electronics and Eos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and Eos Energy
The main advantage of trading using opposite Kimball Electronics and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, Eos 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 Eos Energy will offset losses from the drop in Eos 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 |
| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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