Correlation Between Aclarion and Kimball Electronics

Can any of the company-specific risk be diversified away by investing in both Aclarion 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 Aclarion and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aclarion and Kimball Electronics, you can compare the effects of market volatilities on Aclarion 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 Aclarion with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclarion and Kimball Electronics.

Diversification Opportunities for Aclarion and Kimball Electronics

0.1

Correlation Coefficient

Aclarion  Kimball Electronics

Average diversification

The 3 months correlation between Aclarion and Kimball is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aclarion and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Aclarion 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 Aclarion 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 Aclarion i.e., Aclarion and Kimball Electronics go up and down completely randomly.

Pair Corralation between Aclarion and Kimball Electronics

Assuming the 90 days horizon Aclarion is expected to generate 42.39 times more return on investment than Kimball Electronics. However, Aclarion is 42.39 times more volatile than Kimball Electronics. It trades about 0.1 of its potential returns per unit of risk. Kimball Electronics is currently generating about -0.02 per unit of risk. If you would invest  18.00  in Aclarion on October 6, 2024 and sell it today you would lose (15.45) from holding Aclarion or give up 85.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	77.47%
Values	Daily Returns

Aclarion  vs.  Kimball Electronics

Aclarion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aclarion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unfluctuating basic indicators, Aclarion may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Kimball Electronics

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kimball Electronics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Kimball Electronics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Aclarion and Kimball Electronics

The main advantage of trading using opposite Aclarion and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclarion 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 Aclarion 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.