Correlation Between Kinko Optical and Yuanta Daily
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Yuanta Daily 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 Kinko Optical and Yuanta Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinko Optical Co and Yuanta Daily CSI, you can compare the effects of market volatilities on Kinko Optical and Yuanta Daily 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 Kinko Optical with a short position of Yuanta Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Yuanta Daily.
Diversification Opportunities for Kinko Optical and Yuanta Daily
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinko and Yuanta is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Yuanta Daily CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Daily CSI and Kinko Optical 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 Kinko Optical Co are associated (or correlated) with Yuanta Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Daily CSI has no effect on the direction of Kinko Optical i.e., Kinko Optical and Yuanta Daily go up and down completely randomly.
Pair Corralation between Kinko Optical and Yuanta Daily
Assuming the 90 days trading horizon Kinko Optical Co is expected to under-perform the Yuanta Daily. But the stock apears to be less risky and, when comparing its historical volatility, Kinko Optical Co is 1.88 times less risky than Yuanta Daily. The stock trades about -0.11 of its potential returns per unit of risk. The Yuanta Daily CSI is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,405 in Yuanta Daily CSI on August 30, 2024 and sell it today you would earn a total of 145.00 from holding Yuanta Daily CSI or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinko Optical Co vs. Yuanta Daily CSI
Performance |
| Timeline |
| Kinko Optical |
| Yuanta Daily CSI |
Kinko Optical and Yuanta Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and Yuanta Daily
The main advantage of trading using opposite Kinko Optical and Yuanta Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Yuanta Daily 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 Yuanta Daily will offset losses from the drop in Yuanta Daily's long position.| Kinko Optical vs. Asia Optical Co | Kinko Optical vs. Genius Electronic Optical | Kinko Optical vs. Altek Corp | Kinko Optical vs. Hannstar Display Corp |
| Yuanta Daily vs. Symtek Automation Asia | Yuanta Daily vs. CTCI Corp | Yuanta Daily vs. Information Technology Total | Yuanta Daily vs. Kinko Optical Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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