Correlation Between Kinsus Interconnect and WT Microelectronics
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and WT Microelectronics 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 WT Microelectronics 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 WT Microelectronics Co, you can compare the effects of market volatilities on Kinsus Interconnect and WT Microelectronics 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 WT Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and WT Microelectronics.
Diversification Opportunities for Kinsus Interconnect and WT Microelectronics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinsus and 3036A is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and WT Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT Microelectronics 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 WT Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT Microelectronics has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and WT Microelectronics go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and WT Microelectronics
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the WT Microelectronics. In addition to that, Kinsus Interconnect is 6.48 times more volatile than WT Microelectronics Co. It trades about -0.01 of its total potential returns per unit of risk. WT Microelectronics Co is currently generating about 0.05 per unit of volatility. If you would invest 4,593 in WT Microelectronics Co on September 4, 2024 and sell it today you would earn a total of 362.00 from holding WT Microelectronics Co or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. WT Microelectronics Co
Performance |
| Timeline |
| Kinsus Interconnect |
| WT Microelectronics |
Kinsus Interconnect and WT Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and WT Microelectronics
The main advantage of trading using opposite Kinsus Interconnect and WT Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, WT Microelectronics 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 WT Microelectronics will offset losses from the drop in WT Microelectronics' 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 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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