Correlation Between Kinsus Interconnect and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Ibase Gaming 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 Ibase Gaming 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 Ibase Gaming, you can compare the effects of market volatilities on Kinsus Interconnect and Ibase Gaming 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 Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Ibase Gaming.
Diversification Opportunities for Kinsus Interconnect and Ibase Gaming
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinsus and Ibase is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming 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 Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Ibase Gaming go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Ibase Gaming
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 1.07 times more return on investment than Ibase Gaming. However, Kinsus Interconnect is 1.07 times more volatile than Ibase Gaming. It trades about 0.0 of its potential returns per unit of risk. Ibase Gaming is currently generating about -0.04 per unit of risk. If you would invest 10,300 in Kinsus Interconnect Technology on September 4, 2024 and sell it today you would lose (900.00) from holding Kinsus Interconnect Technology or give up 8.74% 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. Ibase Gaming
Performance |
| Timeline |
| Kinsus Interconnect |
| Ibase Gaming |
Kinsus Interconnect and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Ibase Gaming
The main advantage of trading using opposite Kinsus Interconnect and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.| Kinsus Interconnect vs. Taiwan Semiconductor Manufacturing | Kinsus Interconnect vs. Yang Ming Marine | Kinsus Interconnect vs. AU Optronics | Kinsus Interconnect vs. Innolux Corp |
| Ibase Gaming vs. Sitronix Technology Corp | Ibase Gaming vs. Kinsus Interconnect Technology | Ibase Gaming vs. WiseChip Semiconductor | Ibase Gaming vs. Novatek Microelectronics 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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