Correlation Between Kimball Electronics and Nexera Energy
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Nexera Energy 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 Nexera Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Nexera Energy, you can compare the effects of market volatilities on Kimball Electronics and Nexera Energy 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 Nexera Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Nexera Energy.
Diversification Opportunities for Kimball Electronics and Nexera Energy
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kimball and Nexera is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Nexera Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexera Energy 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 Nexera Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexera Energy has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Nexera Energy go up and down completely randomly.
Pair Corralation between Kimball Electronics and Nexera Energy
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 30.82 times less return on investment than Nexera Energy. But when comparing it to its historical volatility, Kimball Electronics is 15.98 times less risky than Nexera Energy. It trades about 0.03 of its potential returns per unit of risk. Nexera Energy is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.94 in Nexera Energy on December 29, 2023 and sell it today you would lose (2.58) from holding Nexera Energy or give up 87.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kimball Electronics vs. Nexera Energy
Performance |
Timeline |
Kimball Electronics |
Nexera Energy |
Kimball Electronics and Nexera Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kimball Electronics and Nexera Energy
The main advantage of trading using opposite Kimball Electronics and Nexera Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, Nexera Energy 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 Nexera Energy will offset losses from the drop in Nexera Energy's long position.Kimball Electronics vs. Bloom Energy Corp | Kimball Electronics vs. ADS TEC ENERGY PLC | Kimball Electronics vs. Microvast Holdings | Kimball Electronics vs. Noco noco Ordinary Share |
Nexera Energy vs. Forsys Metals Corp | Nexera Energy vs. Gatos Silver | Nexera Energy vs. Black Box Entertainment | Nexera Energy vs. Integrated Media Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |