Correlation Between Kinsus Interconnect and Powertech Technology
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Powertech 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 Powertech 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 Powertech Technology, you can compare the effects of market volatilities on Kinsus Interconnect and Powertech 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 Powertech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Powertech Technology.
Diversification Opportunities for Kinsus Interconnect and Powertech Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinsus and Powertech is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Powertech Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powertech 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 Powertech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powertech Technology has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Powertech Technology go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Powertech Technology
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 1.67 times more return on investment than Powertech Technology. However, Kinsus Interconnect is 1.67 times more volatile than Powertech Technology. It trades about -0.02 of its potential returns per unit of risk. Powertech Technology is currently generating about -0.17 per unit of risk. If you would invest 10,750 in Kinsus Interconnect Technology on September 12, 2024 and sell it today you would lose (600.00) from holding Kinsus Interconnect Technology or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Powertech Technology
Performance |
| Timeline |
| Kinsus Interconnect |
| Powertech Technology |
Kinsus Interconnect and Powertech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Powertech Technology
The main advantage of trading using opposite Kinsus Interconnect and Powertech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Powertech 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 Powertech Technology will offset losses from the drop in Powertech Technology's long position.| Kinsus Interconnect vs. AU Optronics | Kinsus Interconnect vs. Innolux Corp | Kinsus Interconnect vs. Ruentex Development Co | Kinsus Interconnect vs. WiseChip Semiconductor |
| Powertech Technology vs. Novatek Microelectronics Corp | Powertech Technology vs. King Yuan Electronics | Powertech Technology vs. Realtek Semiconductor Corp | Powertech Technology vs. Nanya Technology 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |