Correlation Between Kimball Electronics and Knightscope
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Knightscope 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 Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Knightscope, you can compare the effects of market volatilities on Kimball Electronics and Knightscope 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 Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Knightscope.
Diversification Opportunities for Kimball Electronics and Knightscope
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimball and Knightscope is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope 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 Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Knightscope go up and down completely randomly.
Pair Corralation between Kimball Electronics and Knightscope
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 1.96 times less return on investment than Knightscope. But when comparing it to its historical volatility, Kimball Electronics is 4.61 times less risky than Knightscope. It trades about 0.12 of its potential returns per unit of risk. Knightscope is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,803 in Knightscope on August 31, 2024 and sell it today you would lose (67.00) from holding Knightscope or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimball Electronics vs. Knightscope
Performance |
| Timeline |
| Kimball Electronics |
| Knightscope |
Kimball Electronics and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and Knightscope
The main advantage of trading using opposite Kimball Electronics and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, Knightscope 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 Knightscope will offset losses from the drop in Knightscope's long position.| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |