Correlation Between Kinpo Electronics and Acbel Polytech
Can any of the company-specific risk be diversified away by investing in both Kinpo Electronics and Acbel Polytech 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 Kinpo Electronics and Acbel Polytech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinpo Electronics and Acbel Polytech, you can compare the effects of market volatilities on Kinpo Electronics and Acbel Polytech 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 Kinpo Electronics with a short position of Acbel Polytech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinpo Electronics and Acbel Polytech.
Diversification Opportunities for Kinpo Electronics and Acbel Polytech
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinpo and Acbel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kinpo Electronics and Acbel Polytech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acbel Polytech and Kinpo 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 Kinpo Electronics are associated (or correlated) with Acbel Polytech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acbel Polytech has no effect on the direction of Kinpo Electronics i.e., Kinpo Electronics and Acbel Polytech go up and down completely randomly.
Pair Corralation between Kinpo Electronics and Acbel Polytech
Assuming the 90 days trading horizon Kinpo Electronics is expected to generate 1.3 times more return on investment than Acbel Polytech. However, Kinpo Electronics is 1.3 times more volatile than Acbel Polytech. It trades about 0.0 of its potential returns per unit of risk. Acbel Polytech is currently generating about -0.05 per unit of risk. If you would invest 2,555 in Kinpo Electronics on October 25, 2024 and sell it today you would lose (55.00) from holding Kinpo Electronics or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Kinpo Electronics vs. Acbel Polytech
Performance |
| Timeline |
| Kinpo Electronics |
| Acbel Polytech |
Kinpo Electronics and Acbel Polytech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinpo Electronics and Acbel Polytech
The main advantage of trading using opposite Kinpo Electronics and Acbel Polytech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinpo Electronics position performs unexpectedly, Acbel Polytech 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 Acbel Polytech will offset losses from the drop in Acbel Polytech's long position.| Kinpo Electronics vs. Tong Yang Industry | Kinpo Electronics vs. Ta Yih Industrial | Kinpo Electronics vs. Basso Industry Corp | Kinpo Electronics vs. China Motor Corp |
| Acbel Polytech vs. Cheng Uei Precision | Acbel Polytech vs. Gemtek Technology Co | Acbel Polytech vs. Kinpo Electronics | Acbel Polytech vs. Darfon Electronics Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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