Correlation Between Kinsus Interconnect and Taiwan Surface

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

Diversification Opportunities for Kinsus Interconnect and Taiwan Surface

0.71

Correlation Coefficient

Kinsus Interconnect  Taiwan Surface

Poor diversification

The 3 months correlation between Kinsus and Taiwan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kinsus Interconnect Technology and Taiwan Surface Mounting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Surface Mounting 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 Taiwan Surface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Surface Mounting has no effect on the direction of Kinsus Interconnect i.e., Kinsus Interconnect and Taiwan Surface go up and down completely randomly.

Pair Corralation between Kinsus Interconnect and Taiwan Surface

Assuming the 90 days trading horizon Kinsus Interconnect Technology is expected to under-perform the Taiwan Surface. In addition to that, Kinsus Interconnect is 1.27 times more volatile than Taiwan Surface Mounting. It trades about 0.0 of its total potential returns per unit of risk. Taiwan Surface Mounting is currently generating about 0.02 per unit of volatility. If you would invest  9,090  in Taiwan Surface Mounting on August 31, 2024 and sell it today you would earn a total of  1,060  from holding Taiwan Surface Mounting or generate 11.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Kinsus Interconnect Technology  vs.  Taiwan Surface Mounting

Kinsus Interconnect

Risk-Adjusted Performance

0 of 100

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 abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Taiwan Surface Mounting

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Taiwan Surface Mounting has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Kinsus Interconnect and Taiwan Surface

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

The idea behind Kinsus Interconnect Technology and Taiwan Surface Mounting 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.