Correlation Between Kinsus Interconnect and Golden Biotechnology

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

Diversification Opportunities for Kinsus Interconnect and Golden Biotechnology

0.45

Correlation Coefficient

Kinsus Interconnect  Golden Biotechnology

Very weak diversification

The 3 months correlation between Kinsus and Golden is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Golden Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Biotechnology 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 Golden Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Biotechnology has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Golden Biotechnology go up and down completely randomly.

Pair Corralation between Kinsus Interconnect and Golden Biotechnology

Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to generate 0.73 times more return on investment than Golden Biotechnology. However, Kinsus Interconnect Technology is 1.37 times less risky than Golden Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Golden Biotechnology is currently generating about -0.06 per unit of risk. If you would invest  10,700  in Kinsus Interconnect Technology on October 9, 2024 and sell it today you would earn a total of  250.00  from holding Kinsus Interconnect Technology or generate 2.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Kinsus Interconnect Technology  vs.  Golden Biotechnology

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.

Golden Biotechnology

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Biotechnology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Golden Biotechnology may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Kinsus Interconnect and Golden Biotechnology

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

The idea behind Kinsus Interconnect Technology and Golden Biotechnology 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.