Correlation Between Kinko Optical and Integrated Service
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Integrated Service 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 Integrated Service 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 Integrated Service Technology, you can compare the effects of market volatilities on Kinko Optical and Integrated Service 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 Integrated Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Integrated Service.
Diversification Opportunities for Kinko Optical and Integrated Service
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinko and Integrated is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Integrated Service Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Service 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 Integrated Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Service has no effect on the direction of Kinko Optical i.e., Kinko Optical and Integrated Service go up and down completely randomly.
Pair Corralation between Kinko Optical and Integrated Service
Assuming the 90 days trading horizon Kinko Optical Co is expected to generate 0.49 times more return on investment than Integrated Service. However, Kinko Optical Co is 2.04 times less risky than Integrated Service. It trades about -0.07 of its potential returns per unit of risk. Integrated Service Technology is currently generating about -0.04 per unit of risk. If you would invest 2,600 in Kinko Optical Co on September 3, 2024 and sell it today you would lose (155.00) from holding Kinko Optical Co or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinko Optical Co vs. Integrated Service Technology
Performance |
| Timeline |
| Kinko Optical |
| Integrated Service |
Kinko Optical and Integrated Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and Integrated Service
The main advantage of trading using opposite Kinko Optical and Integrated Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Integrated Service 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 Integrated Service will offset losses from the drop in Integrated Service'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 |
| Integrated Service vs. Sitronix Technology Corp | Integrated Service vs. Kinsus Interconnect Technology | Integrated Service vs. WiseChip Semiconductor | Integrated Service vs. Novatek Microelectronics Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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