Correlation Between Aiptek International and Kinko Optical
Can any of the company-specific risk be diversified away by investing in both Aiptek International and Kinko Optical 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 Aiptek International and Kinko Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aiptek International and Kinko Optical Co, you can compare the effects of market volatilities on Aiptek International and Kinko Optical 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 Aiptek International with a short position of Kinko Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aiptek International and Kinko Optical.
Diversification Opportunities for Aiptek International and Kinko Optical
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aiptek and Kinko is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aiptek International and Kinko Optical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinko Optical and Aiptek International 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 Aiptek International are associated (or correlated) with Kinko Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinko Optical has no effect on the direction of Aiptek International i.e., Aiptek International and Kinko Optical go up and down completely randomly.
Pair Corralation between Aiptek International and Kinko Optical
Assuming the 90 days trading horizon Aiptek International is expected to generate 1.94 times more return on investment than Kinko Optical. However, Aiptek International is 1.94 times more volatile than Kinko Optical Co. It trades about 0.01 of its potential returns per unit of risk. Kinko Optical Co is currently generating about -0.07 per unit of risk. If you would invest 1,575 in Aiptek International on September 3, 2024 and sell it today you would lose (5.00) from holding Aiptek International or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aiptek International vs. Kinko Optical Co
Performance |
| Timeline |
| Aiptek International |
| Kinko Optical |
Aiptek International and Kinko Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aiptek International and Kinko Optical
The main advantage of trading using opposite Aiptek International and Kinko Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aiptek International position performs unexpectedly, Kinko Optical 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 Kinko Optical will offset losses from the drop in Kinko Optical's long position.| Aiptek International vs. Kinko Optical Co | Aiptek International vs. Altek Corp | Aiptek International vs. Harvatek Corp | Aiptek International vs. Asia Optical Co |
| Kinko Optical vs. Asia Optical Co | Kinko Optical vs. Genius Electronic Optical | Kinko Optical vs. Altek Corp | Kinko Optical vs. Hannstar Display 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |