Correlation Between Tecogen and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both Tecogen 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 Tecogen and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and Kimball Electronics, you can compare the effects of market volatilities on Tecogen 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 Tecogen with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and Kimball Electronics.
Diversification Opportunities for Tecogen and Kimball Electronics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tecogen and Kimball is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Tecogen 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 Tecogen 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 Tecogen i.e., Tecogen and Kimball Electronics go up and down completely randomly.
Pair Corralation between Tecogen and Kimball Electronics
If you would invest 1,815 in Kimball Electronics on August 28, 2024 and sell it today you would earn a total of 119.00 from holding Kimball Electronics or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Tecogen vs. Kimball Electronics
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kimball Electronics |
Tecogen and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and Kimball Electronics
The main advantage of trading using opposite Tecogen and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen 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.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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