Correlation Between Amprius Technologies and Kimball Electronics

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Can any of the company-specific risk be diversified away by investing in both Amprius Technologies 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 Amprius Technologies and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amprius Technologies and Kimball Electronics, you can compare the effects of market volatilities on Amprius Technologies 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 Amprius Technologies with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amprius Technologies and Kimball Electronics.

Diversification Opportunities for Amprius Technologies and Kimball Electronics

-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between Amprius and Kimball is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Amprius Technologies and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Amprius Technologies 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 Amprius Technologies 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 Amprius Technologies i.e., Amprius Technologies and Kimball Electronics go up and down completely randomly.

Pair Corralation between Amprius Technologies and Kimball Electronics

Given the investment horizon of 90 days Amprius Technologies is expected to under-perform the Kimball Electronics. In addition to that, Amprius Technologies is 3.62 times more volatile than Kimball Electronics. It trades about -0.02 of its total potential returns per unit of risk. Kimball Electronics is currently generating about 0.11 per unit of volatility. If you would invest  2,096  in Kimball Electronics on April 24, 2024 and sell it today you would earn a total of  248.00  from holding Kimball Electronics or generate 11.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Amprius Technologies  vs.  Kimball Electronics

 Performance 
       Timeline  
Amprius Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amprius Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Kimball Electronics 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Kimball Electronics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Kimball Electronics may actually be approaching a critical reversion point that can send shares even higher in August 2024.

Amprius Technologies and Kimball Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amprius Technologies and Kimball Electronics

The main advantage of trading using opposite Amprius Technologies and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amprius Technologies 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.
The idea behind Amprius Technologies and Kimball Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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