Correlation Between Kinsus Interconnect and Professional Computer
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Professional Computer 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 Professional Computer 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 Professional Computer Technology, you can compare the effects of market volatilities on Kinsus Interconnect and Professional Computer 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 Professional Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Professional Computer.
Diversification Opportunities for Kinsus Interconnect and Professional Computer
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinsus and Professional is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Professional Computer Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Professional Computer 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 Professional Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Professional Computer has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Professional Computer go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Professional Computer
Assuming the 90 days trading horizon Kinsus Interconnect is expected to generate 2.96 times less return on investment than Professional Computer. But when comparing it to its historical volatility, Kinsus Interconnect Technology is 1.04 times less risky than Professional Computer. It trades about 0.01 of its potential returns per unit of risk. Professional Computer Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,345 in Professional Computer Technology on September 3, 2024 and sell it today you would earn a total of 305.00 from holding Professional Computer Technology or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Professional Computer Technolo
Performance |
| Timeline |
| Kinsus Interconnect |
| Professional Computer |
Kinsus Interconnect and Professional Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Professional Computer
The main advantage of trading using opposite Kinsus Interconnect and Professional Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Professional Computer 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 Professional Computer will offset losses from the drop in Professional Computer'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 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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