Correlation Between Airtac International and Kinik
Can any of the company-specific risk be diversified away by investing in both Airtac International and Kinik 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 Airtac International and Kinik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airtac International Group and Kinik Co, you can compare the effects of market volatilities on Airtac International and Kinik 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 Airtac International with a short position of Kinik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airtac International and Kinik.
Diversification Opportunities for Airtac International and Kinik
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Airtac and Kinik is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Airtac International Group and Kinik Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinik and Airtac 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 Airtac International Group are associated (or correlated) with Kinik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinik has no effect on the direction of Airtac International i.e., Airtac International and Kinik go up and down completely randomly.
Pair Corralation between Airtac International and Kinik
Assuming the 90 days trading horizon Airtac International Group is expected to generate 1.53 times more return on investment than Kinik. However, Airtac International is 1.53 times more volatile than Kinik Co. It trades about -0.02 of its potential returns per unit of risk. Kinik Co is currently generating about -0.16 per unit of risk. If you would invest 83,400 in Airtac International Group on September 25, 2024 and sell it today you would lose (1,500) from holding Airtac International Group or give up 1.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Airtac International Group vs. Kinik Co
Performance |
Timeline |
Airtac International |
Kinik |
Airtac International and Kinik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Airtac International and Kinik
The main advantage of trading using opposite Airtac International and Kinik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airtac International position performs unexpectedly, Kinik 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 Kinik will offset losses from the drop in Kinik's long position.Airtac International vs. Yang Ming Marine | Airtac International vs. Evergreen Marine Corp | Airtac International vs. Eva Airways Corp | Airtac International vs. U Ming Marine Transport |
Kinik vs. Chung Hsin Electric Machinery | Kinik vs. Basso Industry Corp | Kinik vs. Hota Industrial Mfg | Kinik vs. Great Wall Enterprise |
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
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |