Correlation Between Walsin Technology and Kinsus Interconnect

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Walsin Technology and Kinsus Interconnect 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 Walsin Technology and Kinsus Interconnect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walsin Technology Corp and Kinsus Interconnect Technology, you can compare the effects of market volatilities on Walsin Technology and Kinsus Interconnect 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 Walsin Technology with a short position of Kinsus Interconnect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walsin Technology and Kinsus Interconnect.

Diversification Opportunities for Walsin Technology and Kinsus Interconnect

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Walsin and Kinsus is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Walsin Technology Corp and Kinsus Interconnect Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinsus Interconnect and Walsin Technology 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 Walsin Technology Corp are associated (or correlated) with Kinsus Interconnect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinsus Interconnect has no effect on the direction of Walsin Technology i.e., Walsin Technology and Kinsus Interconnect go up and down completely randomly.

Pair Corralation between Walsin Technology and Kinsus Interconnect

Assuming the 90 days trading horizon Walsin Technology Corp is expected to generate 0.63 times more return on investment than Kinsus Interconnect. However, Walsin Technology Corp is 1.6 times less risky than Kinsus Interconnect. It trades about 0.01 of its potential returns per unit of risk. Kinsus Interconnect Technology is currently generating about -0.04 per unit of risk. If you would invest  9,300  in Walsin Technology Corp on October 24, 2024 and sell it today you would earn a total of  10.00  from holding Walsin Technology Corp or generate 0.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Walsin Technology Corp  vs.  Kinsus Interconnect Technology

 Performance 
       Timeline  
Walsin Technology Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Walsin Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
Kinsus Interconnect 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Kinsus Interconnect Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Walsin Technology and Kinsus Interconnect Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Walsin Technology and Kinsus Interconnect

The main advantage of trading using opposite Walsin Technology and Kinsus Interconnect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walsin Technology position performs unexpectedly, Kinsus Interconnect 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 Kinsus Interconnect will offset losses from the drop in Kinsus Interconnect's long position.
The idea behind Walsin Technology Corp and Kinsus Interconnect Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios