Correlation Between Kinko Optical and Min Aik
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Min Aik 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 Min Aik 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 Min Aik Technology, you can compare the effects of market volatilities on Kinko Optical and Min Aik 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 Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Min Aik.
Diversification Opportunities for Kinko Optical and Min Aik
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinko and Min is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology 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 Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of Kinko Optical i.e., Kinko Optical and Min Aik go up and down completely randomly.
Pair Corralation between Kinko Optical and Min Aik
Assuming the 90 days trading horizon Kinko Optical Co is expected to under-perform the Min Aik. But the stock apears to be less risky and, when comparing its historical volatility, Kinko Optical Co is 1.49 times less risky than Min Aik. The stock trades about -0.02 of its potential returns per unit of risk. The Min Aik Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,715 in Min Aik Technology on September 4, 2024 and sell it today you would earn a total of 635.00 from holding Min Aik Technology or generate 37.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Kinko Optical Co vs. Min Aik Technology
Performance |
| Timeline |
| Kinko Optical |
| Min Aik Technology |
Kinko Optical and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and Min Aik
The main advantage of trading using opposite Kinko Optical and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik'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 |
| Min Aik vs. Taiwan Semiconductor Manufacturing | Min Aik vs. Yang Ming Marine | Min Aik vs. ASE Industrial Holding | Min Aik 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |