Correlation Between Kinsus Interconnect and Flexium Interconnect
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Flexium Interconnect 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 Flexium Interconnect 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 Flexium Interconnect, you can compare the effects of market volatilities on Kinsus Interconnect and Flexium Interconnect 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 Flexium Interconnect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Flexium Interconnect.
Diversification Opportunities for Kinsus Interconnect and Flexium Interconnect
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinsus and Flexium is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Flexium Interconnect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexium Interconnect 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 Flexium Interconnect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexium Interconnect has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Flexium Interconnect go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Flexium Interconnect
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 1.55 times more return on investment than Flexium Interconnect. However, Kinsus Interconnect is 1.55 times more volatile than Flexium Interconnect. It trades about -0.01 of its potential returns per unit of risk. Flexium Interconnect is currently generating about -0.05 per unit of risk. If you would invest 11,500 in Kinsus Interconnect Technology on September 3, 2024 and sell it today you would lose (2,050) from holding Kinsus Interconnect Technology or give up 17.83% 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. Flexium Interconnect
Performance |
| Timeline |
| Kinsus Interconnect |
| Flexium Interconnect |
Kinsus Interconnect and Flexium Interconnect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Flexium Interconnect
The main advantage of trading using opposite Kinsus Interconnect and Flexium Interconnect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Flexium Interconnect 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 Flexium Interconnect will offset losses from the drop in Flexium Interconnect's long position.| Kinsus Interconnect vs. Taiwan Semiconductor Manufacturing | Kinsus Interconnect vs. Yang Ming Marine | Kinsus Interconnect vs. ASE Industrial Holding | Kinsus Interconnect vs. AU Optronics |
| Flexium Interconnect vs. Zhen Ding Technology | Flexium Interconnect vs. Catcher Technology Co | Flexium Interconnect vs. Unimicron Technology Corp | Flexium Interconnect vs. Career Technology MFG |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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