Correlation Between Kimball Electronics and FuelPositive Corp
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and FuelPositive Corp 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 FuelPositive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and FuelPositive Corp, you can compare the effects of market volatilities on Kimball Electronics and FuelPositive Corp 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 FuelPositive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and FuelPositive Corp.
Diversification Opportunities for Kimball Electronics and FuelPositive Corp
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kimball and FuelPositive is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and FuelPositive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelPositive Corp 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 FuelPositive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelPositive Corp has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and FuelPositive Corp go up and down completely randomly.
Pair Corralation between Kimball Electronics and FuelPositive Corp
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 4.76 times less return on investment than FuelPositive Corp. But when comparing it to its historical volatility, Kimball Electronics is 8.39 times less risky than FuelPositive Corp. It trades about 0.18 of its potential returns per unit of risk. FuelPositive Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3.00 in FuelPositive Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding FuelPositive Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimball Electronics vs. FuelPositive Corp
Performance |
| Timeline |
| Kimball Electronics |
| FuelPositive Corp |
Kimball Electronics and FuelPositive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and FuelPositive Corp
The main advantage of trading using opposite Kimball Electronics and FuelPositive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, FuelPositive Corp 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 FuelPositive Corp will offset losses from the drop in FuelPositive Corp's long position.| Kimball Electronics vs. Desktop Metal | Kimball Electronics vs. Fabrinet | Kimball Electronics vs. Knowles Cor | Kimball Electronics vs. Ubiquiti Networks |
| FuelPositive Corp vs. AmmPower Corp | FuelPositive Corp vs. FuelPositive Corp | FuelPositive Corp vs. Graphene Manufacturing Group | FuelPositive Corp vs. Exro Technologies |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| 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 Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |