Correlation Between Kinsus Interconnect and Shin Zu
Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Shin Zu 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 Kinsus Interconnect and Shin Zu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinsus Interconnect Technology and Shin Zu Shing, you can compare the effects of market volatilities on Kinsus Interconnect and Shin Zu 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 Kinsus Interconnect with a short position of Shin Zu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Shin Zu.
Diversification Opportunities for Kinsus Interconnect and Shin Zu
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinsus and Shin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Shin Zu Shing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Zu Shing and Kinsus Interconnect 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 Kinsus Interconnect Technology are associated (or correlated) with Shin Zu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Zu Shing has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Shin Zu go up and down completely randomly.
Pair Corralation between Kinsus Interconnect and Shin Zu
Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Shin Zu. But the stock apears to be less risky and, when comparing its historical volatility, Kinsus Interconnect Technology is 1.41 times less risky than Shin Zu. The stock trades about -0.08 of its potential returns per unit of risk. The Shin Zu Shing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 20,450 in Shin Zu Shing on December 29, 2024 and sell it today you would earn a total of 4,000 from holding Shin Zu Shing or generate 19.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kinsus Interconnect Technology vs. Shin Zu Shing
Performance |
Timeline |
Kinsus Interconnect |
Shin Zu Shing |
Kinsus Interconnect and Shin Zu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinsus Interconnect and Shin Zu
The main advantage of trading using opposite Kinsus Interconnect and Shin Zu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Shin Zu 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 Shin Zu will offset losses from the drop in Shin Zu's long position.Kinsus Interconnect vs. Unimicron Technology Corp | Kinsus Interconnect vs. Nan Ya Printed | Kinsus Interconnect vs. Novatek Microelectronics Corp | Kinsus Interconnect vs. Powertech Technology |
Shin Zu vs. Catcher Technology Co | Shin Zu vs. Tripod Technology Corp | Shin Zu vs. Chicony Electronics Co | Shin Zu vs. Kinsus Interconnect Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |