Correlation Between Kinko Optical and AVerMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and AVerMedia Technologies 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 AVerMedia Technologies 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 AVerMedia Technologies, you can compare the effects of market volatilities on Kinko Optical and AVerMedia Technologies 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 AVerMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and AVerMedia Technologies.
Diversification Opportunities for Kinko Optical and AVerMedia Technologies
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinko and AVerMedia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and AVerMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVerMedia Technologies 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 AVerMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVerMedia Technologies has no effect on the direction of Kinko Optical i.e., Kinko Optical and AVerMedia Technologies go up and down completely randomly.
Pair Corralation between Kinko Optical and AVerMedia Technologies
Assuming the 90 days trading horizon Kinko Optical Co is expected to generate 0.75 times more return on investment than AVerMedia Technologies. However, Kinko Optical Co is 1.33 times less risky than AVerMedia Technologies. It trades about -0.13 of its potential returns per unit of risk. AVerMedia Technologies is currently generating about -0.1 per unit of risk. If you would invest 2,630 in Kinko Optical Co on September 3, 2024 and sell it today you would lose (185.00) from holding Kinko Optical Co or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinko Optical Co vs. AVerMedia Technologies
Performance |
| Timeline |
| Kinko Optical |
| AVerMedia Technologies |
Kinko Optical and AVerMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and AVerMedia Technologies
The main advantage of trading using opposite Kinko Optical and AVerMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, AVerMedia Technologies 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 AVerMedia Technologies will offset losses from the drop in AVerMedia Technologies' 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 |
| AVerMedia Technologies vs. Clevo Co | AVerMedia Technologies vs. Zinwell | AVerMedia Technologies vs. Gigastorage Corp | AVerMedia Technologies vs. Shuttle |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |