Correlation Between Kinsus Interconnect and Adata Technology
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Adata 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 Adata 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 Adata Technology Co, you can compare the effects of market volatilities on Kinsus Interconnect and Adata 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 Adata Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Adata Technology.
Diversification Opportunities for Kinsus Interconnect and Adata Technology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kinsus and Adata is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Adata Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adata Technology 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 Adata Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adata Technology has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Adata Technology go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Adata Technology
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Adata Technology. In addition to that, Kinsus Interconnect is 1.45 times more volatile than Adata Technology Co. It trades about -0.26 of its total potential returns per unit of risk. Adata Technology Co is currently generating about 0.11 per unit of volatility. If you would invest 8,480 in Adata Technology Co on September 3, 2024 and sell it today you would earn a total of 240.00 from holding Adata Technology Co or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Adata Technology Co
Performance |
| Timeline |
| Kinsus Interconnect |
| Adata Technology |
Kinsus Interconnect and Adata Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Adata Technology
The main advantage of trading using opposite Kinsus Interconnect and Adata Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Adata 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 Adata Technology will offset losses from the drop in Adata Technology'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 |
| Adata Technology vs. Sitronix Technology Corp | Adata Technology vs. Kinsus Interconnect Technology | Adata Technology vs. WiseChip Semiconductor | Adata Technology vs. Novatek Microelectronics Corp |
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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