Correlation Between Kinko Optical and Aiptek International
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Aiptek International 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 Aiptek International 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 Aiptek International, you can compare the effects of market volatilities on Kinko Optical and Aiptek International 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 Aiptek International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Aiptek International.
Diversification Opportunities for Kinko Optical and Aiptek International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinko and Aiptek is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Aiptek International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aiptek International 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 Aiptek International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aiptek International has no effect on the direction of Kinko Optical i.e., Kinko Optical and Aiptek International go up and down completely randomly.
Pair Corralation between Kinko Optical and Aiptek International
Assuming the 90 days trading horizon Kinko Optical Co is expected to under-perform the Aiptek International. In addition to that, Kinko Optical is 1.09 times more volatile than Aiptek International. It trades about -0.02 of its total potential returns per unit of risk. Aiptek International is currently generating about 0.04 per unit of volatility. If you would invest 1,430 in Aiptek International on October 25, 2024 and sell it today you would earn a total of 20.00 from holding Aiptek International or generate 1.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Kinko Optical Co vs. Aiptek International
Performance |
Timeline |
Kinko Optical |
Aiptek International |
Kinko Optical and Aiptek International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinko Optical and Aiptek International
The main advantage of trading using opposite Kinko Optical and Aiptek International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Aiptek International 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 Aiptek International will offset losses from the drop in Aiptek International'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 |
Aiptek International vs. Kinko Optical Co | Aiptek International vs. Altek Corp | Aiptek International vs. Harvatek Corp | Aiptek International vs. Asia Optical Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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