Correlation Between Kinko Optical and Maxigen Biotech
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Maxigen Biotech 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 Maxigen Biotech 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 Maxigen Biotech, you can compare the effects of market volatilities on Kinko Optical and Maxigen Biotech 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 Maxigen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Maxigen Biotech.
Diversification Opportunities for Kinko Optical and Maxigen Biotech
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinko and Maxigen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Maxigen Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxigen Biotech 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 Maxigen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxigen Biotech has no effect on the direction of Kinko Optical i.e., Kinko Optical and Maxigen Biotech go up and down completely randomly.
Pair Corralation between Kinko Optical and Maxigen Biotech
Assuming the 90 days trading horizon Kinko Optical Co is expected to generate 0.99 times more return on investment than Maxigen Biotech. However, Kinko Optical Co is 1.01 times less risky than Maxigen Biotech. It trades about 0.01 of its potential returns per unit of risk. Maxigen Biotech is currently generating about 0.0 per unit of risk. If you would invest 2,554 in Kinko Optical Co on October 25, 2024 and sell it today you would earn a total of 106.00 from holding Kinko Optical Co or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinko Optical Co vs. Maxigen Biotech
Performance |
| Timeline |
| Kinko Optical |
| Maxigen Biotech |
Kinko Optical and Maxigen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and Maxigen Biotech
The main advantage of trading using opposite Kinko Optical and Maxigen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Maxigen Biotech 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 Maxigen Biotech will offset losses from the drop in Maxigen Biotech'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 |
| Maxigen Biotech vs. Healthconn Corp | Maxigen Biotech vs. Cleanaway Co | Maxigen Biotech vs. PChome Online | Maxigen Biotech vs. Sunmax Biotechnology 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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