Correlation Between Kinko Optical and Uniform Industrial
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Uniform Industrial 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 Uniform Industrial 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 Uniform Industrial Corp, you can compare the effects of market volatilities on Kinko Optical and Uniform Industrial 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 Uniform Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Uniform Industrial.
Diversification Opportunities for Kinko Optical and Uniform Industrial
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinko and Uniform is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Uniform Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniform Industrial Corp 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 Uniform Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniform Industrial Corp has no effect on the direction of Kinko Optical i.e., Kinko Optical and Uniform Industrial go up and down completely randomly.
Pair Corralation between Kinko Optical and Uniform Industrial
Assuming the 90 days trading horizon Kinko Optical Co is expected to generate 0.8 times more return on investment than Uniform Industrial. However, Kinko Optical Co is 1.26 times less risky than Uniform Industrial. It trades about -0.07 of its potential returns per unit of risk. Uniform Industrial Corp is currently generating about -0.22 per unit of risk. If you would invest 2,500 in Kinko Optical Co on September 3, 2024 and sell it today you would lose (55.00) from holding Kinko Optical Co or give up 2.2% 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. Uniform Industrial Corp
Performance |
| Timeline |
| Kinko Optical |
| Uniform Industrial Corp |
Kinko Optical and Uniform Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and Uniform Industrial
The main advantage of trading using opposite Kinko Optical and Uniform Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Uniform Industrial 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 Uniform Industrial will offset losses from the drop in Uniform Industrial'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 |
| Uniform Industrial vs. Taiwan Semiconductor Manufacturing | Uniform Industrial vs. Yang Ming Marine | Uniform Industrial vs. ASE Industrial Holding | Uniform Industrial vs. AU Optronics |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |