Correlation Between Kinsus Interconnect and ADLINK Technology
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and ADLINK 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 ADLINK 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 ADLINK Technology, you can compare the effects of market volatilities on Kinsus Interconnect and ADLINK 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 ADLINK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and ADLINK Technology.
Diversification Opportunities for Kinsus Interconnect and ADLINK Technology
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinsus and ADLINK is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and ADLINK Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADLINK 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 ADLINK Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADLINK Technology has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and ADLINK Technology go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and ADLINK Technology
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the ADLINK Technology. But the stock apears to be less risky and, when comparing its historical volatility, Kinsus Interconnect Technology is 1.01 times less risky than ADLINK Technology. The stock trades about -0.04 of its potential returns per unit of risk. The ADLINK Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,560 in ADLINK Technology on October 24, 2024 and sell it today you would lose (90.00) from holding ADLINK Technology or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. ADLINK Technology
Performance |
| Timeline |
| Kinsus Interconnect |
| ADLINK Technology |
Kinsus Interconnect and ADLINK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and ADLINK Technology
The main advantage of trading using opposite Kinsus Interconnect and ADLINK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, ADLINK 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 ADLINK Technology will offset losses from the drop in ADLINK 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 |
| ADLINK Technology vs. C Media Electronics | ADLINK Technology vs. HOYA Resort Hotel | ADLINK Technology vs. Mercuries Life Insurance | ADLINK Technology vs. Ambassador Hotel |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |