Correlation Between Kinsus Interconnect and Sunnic Technology
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Sunnic 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 Sunnic 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 Sunnic Technology Merchandise, you can compare the effects of market volatilities on Kinsus Interconnect and Sunnic 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 Sunnic Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Sunnic Technology.
Diversification Opportunities for Kinsus Interconnect and Sunnic Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinsus and Sunnic is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Sunnic Technology Merchandise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunnic 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 Sunnic Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunnic Technology has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Sunnic Technology go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Sunnic Technology
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 0.82 times more return on investment than Sunnic Technology. However, Kinsus Interconnect Technology is 1.23 times less risky than Sunnic Technology. It trades about -0.27 of its potential returns per unit of risk. Sunnic Technology Merchandise is currently generating about -0.23 per unit of risk. If you would invest 10,450 in Kinsus Interconnect Technology on September 4, 2024 and sell it today you would lose (1,080) from holding Kinsus Interconnect Technology or give up 10.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Sunnic Technology Merchandise
Performance |
| Timeline |
| Kinsus Interconnect |
| Sunnic Technology |
Kinsus Interconnect and Sunnic Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Sunnic Technology
The main advantage of trading using opposite Kinsus Interconnect and Sunnic Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Sunnic 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 Sunnic Technology will offset losses from the drop in Sunnic 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 |
| Sunnic Technology vs. Sitronix Technology Corp | Sunnic Technology vs. Kinsus Interconnect Technology | Sunnic Technology vs. WiseChip Semiconductor | Sunnic 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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