Correlation Between Kinsus Interconnect and Systex Corp
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Systex Corp 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 Systex Corp 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 Systex Corp, you can compare the effects of market volatilities on Kinsus Interconnect and Systex Corp 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 Systex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Systex Corp.
Diversification Opportunities for Kinsus Interconnect and Systex Corp
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinsus and Systex is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Systex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systex Corp 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 Systex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systex Corp has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Systex Corp go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Systex Corp
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Systex Corp. In addition to that, Kinsus Interconnect is 1.13 times more volatile than Systex Corp. It trades about 0.0 of its total potential returns per unit of risk. Systex Corp is currently generating about 0.06 per unit of volatility. If you would invest 7,540 in Systex Corp on October 25, 2024 and sell it today you would earn a total of 5,410 from holding Systex Corp or generate 71.75% 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. Systex Corp
Performance |
| Timeline |
| Kinsus Interconnect |
| Systex Corp |
Kinsus Interconnect and Systex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Systex Corp
The main advantage of trading using opposite Kinsus Interconnect and Systex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Systex Corp 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 Systex Corp will offset losses from the drop in Systex Corp'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 |
| Systex Corp vs. Unimicron Technology Corp | Systex Corp vs. Kinsus Interconnect Technology | Systex Corp vs. Novatek Microelectronics Corp | Systex Corp vs. Delta Electronics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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