Correlation Between Kinsus Interconnect and Alpha Networks
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Alpha Networks 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 Alpha Networks 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 Alpha Networks, you can compare the effects of market volatilities on Kinsus Interconnect and Alpha Networks 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 Alpha Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Alpha Networks.
Diversification Opportunities for Kinsus Interconnect and Alpha Networks
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinsus and Alpha is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Alpha Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Networks 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 Alpha Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Networks has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Alpha Networks go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Alpha Networks
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Alpha Networks. But the stock apears to be less risky and, when comparing its historical volatility, Kinsus Interconnect Technology is 1.05 times less risky than Alpha Networks. The stock trades about -0.4 of its potential returns per unit of risk. The Alpha Networks is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,610 in Alpha Networks on August 26, 2024 and sell it today you would lose (10.00) from holding Alpha Networks or give up 0.28% 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. Alpha Networks
Performance |
| Timeline |
| Kinsus Interconnect |
| Alpha Networks |
Kinsus Interconnect and Alpha Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Alpha Networks
The main advantage of trading using opposite Kinsus Interconnect and Alpha Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Alpha Networks 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 Alpha Networks will offset losses from the drop in Alpha Networks' long position.| Kinsus Interconnect vs. Novatek Microelectronics Corp | Kinsus Interconnect vs. Quanta Computer | Kinsus Interconnect vs. United Microelectronics |
| Alpha Networks vs. Gemtek Technology Co | Alpha Networks vs. D Link Corp | Alpha Networks vs. Accton Technology Corp | Alpha Networks vs. Wistron NeWeb 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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