Correlation Between Posiflex Technology and Kinsus Interconnect
Can any of the company-specific risk be diversified away by investing in both Posiflex 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 Posiflex 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 Posiflex Technology and Kinsus Interconnect Technology, you can compare the effects of market volatilities on Posiflex 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 Posiflex Technology with a short position of Kinsus Interconnect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Posiflex Technology and Kinsus Interconnect.
Diversification Opportunities for Posiflex Technology and Kinsus Interconnect
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Posiflex and Kinsus is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Posiflex Technology and Kinsus Interconnect Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinsus Interconnect and Posiflex 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 Posiflex Technology 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 Posiflex Technology i.e., Posiflex Technology and Kinsus Interconnect go up and down completely randomly.
Pair Corralation between Posiflex Technology and Kinsus Interconnect
Assuming the 90 days trading horizon Posiflex Technology is expected to generate 0.98 times more return on investment than Kinsus Interconnect. However, Posiflex Technology is 1.02 times less risky than Kinsus Interconnect. It trades about 0.11 of its potential returns per unit of risk. Kinsus Interconnect Technology is currently generating about 0.0 per unit of risk. If you would invest 12,100 in Posiflex Technology on September 17, 2024 and sell it today you would earn a total of 21,700 from holding Posiflex Technology or generate 179.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Posiflex Technology vs. Kinsus Interconnect Technology
Performance |
Timeline |
Posiflex Technology |
Kinsus Interconnect |
Posiflex Technology and Kinsus Interconnect Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Posiflex Technology and Kinsus Interconnect
The main advantage of trading using opposite Posiflex Technology and Kinsus Interconnect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Posiflex 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.Posiflex Technology vs. AU Optronics | Posiflex Technology vs. Innolux Corp | Posiflex Technology vs. Ruentex Development Co | Posiflex Technology vs. WiseChip Semiconductor |
Kinsus Interconnect vs. AU Optronics | Kinsus Interconnect vs. Innolux Corp | Kinsus Interconnect vs. Ruentex Development Co | Kinsus Interconnect vs. WiseChip Semiconductor |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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