Correlation Between Kinsus Interconnect and Radiant Opto
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Radiant Opto 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 Radiant Opto 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 Radiant Opto Electronics Corp, you can compare the effects of market volatilities on Kinsus Interconnect and Radiant Opto 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 Radiant Opto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Radiant Opto.
Diversification Opportunities for Kinsus Interconnect and Radiant Opto
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kinsus and Radiant is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Radiant Opto Electronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Opto Electro 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 Radiant Opto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Opto Electro has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Radiant Opto go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Radiant Opto
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 1.61 times more return on investment than Radiant Opto. However, Kinsus Interconnect is 1.61 times more volatile than Radiant Opto Electronics Corp. It trades about 0.11 of its potential returns per unit of risk. Radiant Opto Electronics Corp is currently generating about 0.01 per unit of risk. If you would invest 9,670 in Kinsus Interconnect Technology on December 1, 2024 and sell it today you would earn a total of 430.00 from holding Kinsus Interconnect Technology or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Radiant Opto Electronics Corp
Performance |
| Timeline |
| Kinsus Interconnect |
| Radiant Opto Electro |
Kinsus Interconnect and Radiant Opto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Radiant Opto
The main advantage of trading using opposite Kinsus Interconnect and Radiant Opto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Radiant Opto 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 Radiant Opto will offset losses from the drop in Radiant Opto'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 |
| Radiant Opto vs. Powertech Technology | Radiant Opto vs. Catcher Technology Co | Radiant Opto vs. Novatek Microelectronics Corp | Radiant Opto vs. Wistron 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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