Correlation Between Kinsus Interconnect and Arbor Technology

Can any of the company-specific risk be diversified away by investing in both Kinsus Interconnect and Arbor Technology 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 Arbor Technology 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 Arbor Technology, you can compare the effects of market volatilities on Kinsus Interconnect and Arbor Technology 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 Arbor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsus Interconnect and Arbor Technology.

Diversification Opportunities for Kinsus Interconnect and Arbor Technology

-0.58

Correlation Coefficient

Kinsus Interconnect  Arbor Technology

Excellent diversification

The 3 months correlation between Kinsus and Arbor is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Arbor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Technology 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 Arbor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Technology has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Arbor Technology go up and down completely randomly.

Pair Corralation between Kinsus Interconnect and Arbor Technology

Assuming the 90 days trading horizon Kinsus Interconnect is expected to generate 5.56 times less return on investment than Arbor Technology. But when comparing it to its historical volatility, Kinsus Interconnect Technology is 1.11 times less risky than Arbor Technology. It trades about 0.01 of its potential returns per unit of risk. Arbor Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,795  in Arbor Technology on October 9, 2024 and sell it today you would earn a total of  2,825  from holding Arbor Technology or generate 101.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kinsus Interconnect Technology  vs.  Arbor Technology

Kinsus Interconnect

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kinsus Interconnect Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Kinsus Interconnect is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Arbor Technology

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Arbor Technology are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Arbor Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinsus Interconnect and Arbor Technology

The main advantage of trading using opposite Kinsus Interconnect and Arbor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsus Interconnect position performs unexpectedly, Arbor Technology 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 Arbor Technology will offset losses from the drop in Arbor Technology's long position.

The idea behind Kinsus Interconnect Technology and Arbor 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.