Correlation Between Kinko Optical and Hannstar Display
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Hannstar Display 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 Hannstar Display 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 Hannstar Display Corp, you can compare the effects of market volatilities on Kinko Optical and Hannstar Display 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 Hannstar Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Hannstar Display.
Diversification Opportunities for Kinko Optical and Hannstar Display
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinko and Hannstar is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Hannstar Display Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannstar Display 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 Hannstar Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannstar Display Corp has no effect on the direction of Kinko Optical i.e., Kinko Optical and Hannstar Display go up and down completely randomly.
Pair Corralation between Kinko Optical and Hannstar Display
Assuming the 90 days trading horizon Kinko Optical Co is expected to generate 1.39 times more return on investment than Hannstar Display. However, Kinko Optical is 1.39 times more volatile than Hannstar Display Corp. It trades about 0.01 of its potential returns per unit of risk. Hannstar Display Corp is currently generating about -0.05 per unit of risk. If you would invest 2,705 in Kinko Optical Co on October 26, 2024 and sell it today you would lose (45.00) from holding Kinko Optical Co or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinko Optical Co vs. Hannstar Display Corp
Performance |
| Timeline |
| Kinko Optical |
| Hannstar Display Corp |
Kinko Optical and Hannstar Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and Hannstar Display
The main advantage of trading using opposite Kinko Optical and Hannstar Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Hannstar Display 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 Hannstar Display will offset losses from the drop in Hannstar Display'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 |
| Hannstar Display vs. Unimicron Technology Corp | Hannstar Display vs. Kinsus Interconnect Technology | Hannstar Display vs. Novatek Microelectronics Corp | Hannstar Display vs. Delta Electronics |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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