Correlation Between Kinsus Interconnect and Etron Technology
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Etron 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 Etron 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 Etron Technology, you can compare the effects of market volatilities on Kinsus Interconnect and Etron 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 Etron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Etron Technology.
Diversification Opportunities for Kinsus Interconnect and Etron Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinsus and Etron is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Etron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etron 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 Etron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etron Technology has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Etron Technology go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Etron Technology
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 0.94 times more return on investment than Etron Technology. However, Kinsus Interconnect Technology is 1.07 times less risky than Etron Technology. It trades about 0.0 of its potential returns per unit of risk. Etron Technology is currently generating about -0.01 per unit of risk. If you would invest 11,400 in Kinsus Interconnect Technology on December 2, 2024 and sell it today you would lose (1,300) from holding Kinsus Interconnect Technology or give up 11.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Etron Technology
Performance |
| Timeline |
| Kinsus Interconnect |
| Etron Technology |
Kinsus Interconnect and Etron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Etron Technology
The main advantage of trading using opposite Kinsus Interconnect and Etron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Etron 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 Etron Technology will offset losses from the drop in Etron 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 |
| Etron Technology vs. Sunplus Technology Co | Etron Technology vs. Realtek Semiconductor Corp | Etron Technology vs. Winbond Electronics Corp | Etron Technology vs. VIA Technologies |
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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