Correlation Between Energizer Holdings and Kimball Electronics
Can any of the company-specific risk be diversified away by investing in both Energizer Holdings 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 Energizer Holdings and Kimball Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energizer Holdings and Kimball Electronics, you can compare the effects of market volatilities on Energizer Holdings 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 Energizer Holdings with a short position of Kimball Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energizer Holdings and Kimball Electronics.
Diversification Opportunities for Energizer Holdings and Kimball Electronics
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Energizer and Kimball is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Energizer Holdings and Kimball Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimball Electronics and Energizer Holdings 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 Energizer Holdings 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 Energizer Holdings i.e., Energizer Holdings and Kimball Electronics go up and down completely randomly.
Pair Corralation between Energizer Holdings and Kimball Electronics
Considering the 90-day investment horizon Energizer Holdings is expected to generate 1.48 times less return on investment than Kimball Electronics. In addition to that, Energizer Holdings is 1.44 times more volatile than Kimball Electronics. It trades about 0.13 of its total potential returns per unit of risk. Kimball Electronics is currently generating about 0.28 per unit of volatility. If you would invest 1,918 in Kimball Electronics on June 11, 2025 and sell it today you would earn a total of 1,134 from holding Kimball Electronics or generate 59.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energizer Holdings vs. Kimball Electronics
Performance |
| Timeline |
| Energizer Holdings |
| Kimball Electronics |
Energizer Holdings and Kimball Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energizer Holdings and Kimball Electronics
The main advantage of trading using opposite Energizer Holdings and Kimball Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energizer Holdings 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.| Energizer Holdings vs. Kimball Electronics | Energizer Holdings vs. Hayward Holdings | Energizer Holdings vs. Enersys | Energizer Holdings vs. Espey Mfg Electronics |
| Kimball Electronics vs. Energizer Holdings | Kimball Electronics vs. Acuity Brands | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Preformed Line Products |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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