Correlation Between Kinsus Interconnect and Advanced Wireless
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Advanced Wireless 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 Advanced Wireless 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 Advanced Wireless Semiconductor, you can compare the effects of market volatilities on Kinsus Interconnect and Advanced Wireless 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 Advanced Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Advanced Wireless.
Diversification Opportunities for Kinsus Interconnect and Advanced Wireless
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinsus and Advanced is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Advanced Wireless Semiconducto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Wireless 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 Advanced Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Wireless has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Advanced Wireless go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Advanced Wireless
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Advanced Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Kinsus Interconnect Technology is 1.24 times less risky than Advanced Wireless. The stock trades about -0.27 of its potential returns per unit of risk. The Advanced Wireless Semiconductor is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 9,180 in Advanced Wireless Semiconductor on September 4, 2024 and sell it today you would earn a total of 1,170 from holding Advanced Wireless Semiconductor or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsus Interconnect Technology vs. Advanced Wireless Semiconducto
Performance |
| Timeline |
| Kinsus Interconnect |
| Advanced Wireless |
Kinsus Interconnect and Advanced Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsus Interconnect and Advanced Wireless
The main advantage of trading using opposite Kinsus Interconnect and Advanced Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Advanced Wireless 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 Advanced Wireless will offset losses from the drop in Advanced Wireless' 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 |
| Advanced Wireless vs. Sitronix Technology Corp | Advanced Wireless vs. Kinsus Interconnect Technology | Advanced Wireless vs. WiseChip Semiconductor | Advanced Wireless 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |