Correlation Between WiseChip Semiconductor and Kindom Construction
Can any of the company-specific risk be diversified away by investing in both WiseChip Semiconductor and Kindom Construction 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 WiseChip Semiconductor and Kindom Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WiseChip Semiconductor and Kindom Construction Corp, you can compare the effects of market volatilities on WiseChip Semiconductor and Kindom Construction 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 WiseChip Semiconductor with a short position of Kindom Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiseChip Semiconductor and Kindom Construction.
Diversification Opportunities for WiseChip Semiconductor and Kindom Construction
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WiseChip and Kindom is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding WiseChip Semiconductor and Kindom Construction Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kindom Construction Corp and WiseChip Semiconductor 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 WiseChip Semiconductor are associated (or correlated) with Kindom Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kindom Construction Corp has no effect on the direction of WiseChip Semiconductor i.e., WiseChip Semiconductor and Kindom Construction go up and down completely randomly.
Pair Corralation between WiseChip Semiconductor and Kindom Construction
Assuming the 90 days trading horizon WiseChip Semiconductor is expected to under-perform the Kindom Construction. In addition to that, WiseChip Semiconductor is 1.14 times more volatile than Kindom Construction Corp. It trades about -0.04 of its total potential returns per unit of risk. Kindom Construction Corp is currently generating about 0.26 per unit of volatility. If you would invest 4,665 in Kindom Construction Corp on September 13, 2024 and sell it today you would earn a total of 1,115 from holding Kindom Construction Corp or generate 23.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiseChip Semiconductor vs. Kindom Construction Corp
Performance |
| Timeline |
| WiseChip Semiconductor |
| Kindom Construction Corp |
WiseChip Semiconductor and Kindom Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiseChip Semiconductor and Kindom Construction
The main advantage of trading using opposite WiseChip Semiconductor and Kindom Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiseChip Semiconductor position performs unexpectedly, Kindom Construction 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 Kindom Construction will offset losses from the drop in Kindom Construction's long position.| WiseChip Semiconductor vs. AU Optronics | WiseChip Semiconductor vs. Innolux Corp | WiseChip Semiconductor vs. Ruentex Development Co | WiseChip Semiconductor vs. Novatek Microelectronics Corp |
| Kindom Construction vs. Chong Hong Construction | Kindom Construction vs. Ruentex Development Co | Kindom Construction vs. Symtek Automation Asia | Kindom Construction vs. WiseChip Semiconductor |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |