Correlation Between Kinsus Interconnect and Compeq Manufacturing
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Compeq Manufacturing 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 Kinsus Interconnect and Compeq Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinsus Interconnect Technology and Compeq Manufacturing Co, you can compare the effects of market volatilities on Kinsus Interconnect and Compeq Manufacturing 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 Kinsus Interconnect with a short position of Compeq Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Compeq Manufacturing.
Diversification Opportunities for Kinsus Interconnect and Compeq Manufacturing
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinsus and Compeq is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Compeq Manufacturing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compeq Manufacturing and Kinsus Interconnect 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 Kinsus Interconnect Technology are associated (or correlated) with Compeq Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compeq Manufacturing has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Compeq Manufacturing go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Compeq Manufacturing
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Compeq Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Kinsus Interconnect Technology is 1.0 times less risky than Compeq Manufacturing. The stock trades about 0.0 of its potential returns per unit of risk. The Compeq Manufacturing Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,410 in Compeq Manufacturing Co on September 3, 2024 and sell it today you would earn a total of 1,720 from holding Compeq Manufacturing Co or generate 39.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Compeq Manufacturing Co
Performance |
| Timeline |
| Kinsus Interconnect |
| Compeq Manufacturing |
Kinsus Interconnect and Compeq Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Compeq Manufacturing
The main advantage of trading using opposite Kinsus Interconnect and Compeq Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Compeq Manufacturing 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 Compeq Manufacturing will offset losses from the drop in Compeq Manufacturing's long position.| Kinsus Interconnect vs. Taiwan Semiconductor Manufacturing | Kinsus Interconnect vs. Yang Ming Marine | Kinsus Interconnect vs. ASE Industrial Holding | Kinsus Interconnect vs. AU Optronics |
| Compeq Manufacturing vs. Taiwan Semiconductor Manufacturing | Compeq Manufacturing vs. Yang Ming Marine | Compeq Manufacturing vs. ASE Industrial Holding | Compeq Manufacturing vs. AU Optronics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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