Correlation Between Kinsus Interconnect and Unimicron Technology
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Unimicron Technology 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 Unimicron Technology 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 Unimicron Technology Corp, you can compare the effects of market volatilities on Kinsus Interconnect and Unimicron Technology 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 Unimicron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Unimicron Technology.
Diversification Opportunities for Kinsus Interconnect and Unimicron Technology
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinsus and Unimicron is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Unimicron Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimicron Technology Corp 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 Unimicron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimicron Technology Corp has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Unimicron Technology go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Unimicron Technology
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Unimicron Technology. But the stock apears to be less risky and, when comparing its historical volatility, Kinsus Interconnect Technology is 1.23 times less risky than Unimicron Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Unimicron Technology Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 14,950 in Unimicron Technology Corp on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Unimicron Technology Corp or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Unimicron Technology Corp
Performance |
| Timeline |
| Kinsus Interconnect |
| Unimicron Technology Corp |
Kinsus Interconnect and Unimicron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Unimicron Technology
The main advantage of trading using opposite Kinsus Interconnect and Unimicron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Unimicron Technology 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 Unimicron Technology will offset losses from the drop in Unimicron Technology's long position.| Kinsus Interconnect vs. Unimicron Technology Corp | Kinsus Interconnect vs. Nan Ya Printed | Kinsus Interconnect vs. Novatek Microelectronics Corp | Kinsus Interconnect vs. Powertech Technology |
| Unimicron Technology vs. Nan Ya Printed | Unimicron Technology vs. Kinsus Interconnect Technology | Unimicron Technology vs. Novatek Microelectronics Corp | Unimicron Technology vs. LARGAN Precision Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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