Correlation Between Kinsus Interconnect and Asia Vital
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Asia Vital 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 Asia Vital 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 Asia Vital Components, you can compare the effects of market volatilities on Kinsus Interconnect and Asia Vital 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 Asia Vital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Asia Vital.
Diversification Opportunities for Kinsus Interconnect and Asia Vital
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinsus and Asia is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Asia Vital Components in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Vital Components 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 Asia Vital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Vital Components has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Asia Vital go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Asia Vital
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 0.73 times more return on investment than Asia Vital. However, Kinsus Interconnect Technology is 1.37 times less risky than Asia Vital. It trades about -0.07 of its potential returns per unit of risk. Asia Vital Components is currently generating about -0.1 per unit of risk. If you would invest 10,200 in Kinsus Interconnect Technology on October 29, 2024 and sell it today you would lose (390.00) from holding Kinsus Interconnect Technology or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Asia Vital Components
Performance |
| Timeline |
| Kinsus Interconnect |
| Asia Vital Components |
Kinsus Interconnect and Asia Vital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Asia Vital
The main advantage of trading using opposite Kinsus Interconnect and Asia Vital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Asia Vital 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 Asia Vital will offset losses from the drop in Asia Vital's long position.| Kinsus Interconnect vs. Unimicron Technology Corp | Kinsus Interconnect vs. Novatek Microelectronics Corp | Kinsus Interconnect vs. Delta Electronics | Kinsus Interconnect vs. Realtek Semiconductor Corp |
| Asia Vital vs. Unimicron Technology Corp | Asia Vital vs. Kinsus Interconnect Technology | Asia Vital vs. Novatek Microelectronics Corp | Asia Vital vs. Delta Electronics |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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