Correlation Between Pegatron Corp and Kingstate Electronics
Can any of the company-specific risk be diversified away by investing in both Pegatron Corp and Kingstate Electronics 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 Pegatron Corp and Kingstate Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pegatron Corp and Kingstate Electronics, you can compare the effects of market volatilities on Pegatron Corp and Kingstate Electronics 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 Pegatron Corp with a short position of Kingstate Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegatron Corp and Kingstate Electronics.
Diversification Opportunities for Pegatron Corp and Kingstate Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pegatron and Kingstate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pegatron Corp and Kingstate Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingstate Electronics and Pegatron Corp 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 Pegatron Corp are associated (or correlated) with Kingstate Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingstate Electronics has no effect on the direction of Pegatron Corp i.e., Pegatron Corp and Kingstate Electronics go up and down completely randomly.
Pair Corralation between Pegatron Corp and Kingstate Electronics
If you would invest (100.00) in Kingstate Electronics on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Kingstate Electronics or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegatron Corp vs. Kingstate Electronics
Performance |
| Timeline |
| Pegatron Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kingstate Electronics |
Pegatron Corp and Kingstate Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegatron Corp and Kingstate Electronics
The main advantage of trading using opposite Pegatron Corp and Kingstate Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegatron Corp position performs unexpectedly, Kingstate Electronics 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 Kingstate Electronics will offset losses from the drop in Kingstate Electronics' long position.| Pegatron Corp vs. Wistron Corp | Pegatron Corp vs. Quanta Computer | Pegatron Corp vs. Compal Electronics | Pegatron Corp vs. Catcher Technology Co |
| Kingstate Electronics vs. Formosan Union Chemical | Kingstate Electronics vs. Acelon Chemicals Fiber | Kingstate Electronics vs. San Fu Chemical | Kingstate Electronics vs. Ambassador Hotel |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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