Correlation Between NeoVolta Common and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both NeoVolta Common and Kimball Electronics 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 NeoVolta Common and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeoVolta Common Stock and Kimball Electronics, you can compare the effects of market volatilities on NeoVolta Common and Kimball Electronics 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 NeoVolta Common with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeoVolta Common and Kimball Electronics.
Diversification Opportunities for NeoVolta Common and Kimball Electronics
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NeoVolta and Kimball is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding NeoVolta Common Stock and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and NeoVolta Common 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 NeoVolta Common Stock are associated (or correlated) with Kimball Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimball Electronics has no effect on the direction of NeoVolta Common i.e., NeoVolta Common and Kimball Electronics go up and down completely randomly.
Pair Corralation between NeoVolta Common and Kimball Electronics
Given the investment horizon of 90 days NeoVolta Common Stock is expected to generate 1.94 times more return on investment than Kimball Electronics. However, NeoVolta Common is 1.94 times more volatile than Kimball Electronics. It trades about 0.64 of its potential returns per unit of risk. Kimball Electronics is currently generating about 0.18 per unit of risk. If you would invest 288.00 in NeoVolta Common Stock on August 24, 2024 and sell it today you would earn a total of 298.00 from holding NeoVolta Common Stock or generate 103.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NeoVolta Common Stock vs. Kimball Electronics
Performance |
| Timeline |
| NeoVolta Common Stock |
| Kimball Electronics |
NeoVolta Common and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeoVolta Common and Kimball Electronics
The main advantage of trading using opposite NeoVolta Common and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeoVolta Common position performs unexpectedly, Kimball Electronics 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 Kimball Electronics will offset losses from the drop in Kimball Electronics' long position.| NeoVolta Common vs. Plug Power | NeoVolta Common vs. Solid Power | NeoVolta Common vs. CBAK Energy Technology | NeoVolta Common vs. FuelCell Energy |
| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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