Correlation Between WIN Semiconductors and Kinsus Interconnect
Can any of the company-specific risk be diversified away by investing in both WIN Semiconductors and Kinsus Interconnect 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 WIN Semiconductors and Kinsus Interconnect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIN Semiconductors and Kinsus Interconnect Technology, you can compare the effects of market volatilities on WIN Semiconductors and Kinsus Interconnect 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 WIN Semiconductors with a short position of Kinsus Interconnect. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIN Semiconductors and Kinsus Interconnect.
Diversification Opportunities for WIN Semiconductors and Kinsus Interconnect
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WIN and Kinsus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding WIN Semiconductors and Kinsus Interconnect Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinsus Interconnect and WIN Semiconductors 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 WIN Semiconductors are associated (or correlated) with Kinsus Interconnect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinsus Interconnect has no effect on the direction of WIN Semiconductors i.e., WIN Semiconductors and Kinsus Interconnect go up and down completely randomly.
Pair Corralation between WIN Semiconductors and Kinsus Interconnect
Assuming the 90 days trading horizon WIN Semiconductors is expected to under-perform the Kinsus Interconnect. But the stock apears to be less risky and, when comparing its historical volatility, WIN Semiconductors is 1.14 times less risky than Kinsus Interconnect. The stock trades about -0.05 of its potential returns per unit of risk. The Kinsus Interconnect Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9,620 in Kinsus Interconnect Technology on September 1, 2024 and sell it today you would lose (170.00) from holding Kinsus Interconnect Technology or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIN Semiconductors vs. Kinsus Interconnect Technology
Performance |
| Timeline |
| WIN Semiconductors |
| Kinsus Interconnect |
WIN Semiconductors and Kinsus Interconnect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIN Semiconductors and Kinsus Interconnect
The main advantage of trading using opposite WIN Semiconductors and Kinsus Interconnect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIN Semiconductors position performs unexpectedly, Kinsus Interconnect 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 Kinsus Interconnect will offset losses from the drop in Kinsus Interconnect's long position.| WIN Semiconductors vs. LARGAN Precision Co | WIN Semiconductors vs. GlobalWafers Co | WIN Semiconductors vs. Novatek Microelectronics Corp | WIN Semiconductors vs. Advanced Wireless Semiconductor |
| Kinsus Interconnect vs. Unimicron Technology Corp | Kinsus Interconnect vs. Nan Ya Printed | Kinsus Interconnect vs. Novatek Microelectronics Corp | Kinsus Interconnect vs. Powertech 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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