Correlation Between Shinkong Synthetic and Ever Clear
Can any of the company-specific risk be diversified away by investing in both Shinkong Synthetic and Ever Clear 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 Shinkong Synthetic and Ever Clear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinkong Synthetic Fiber and Ever Clear Environmental Eng, you can compare the effects of market volatilities on Shinkong Synthetic and Ever Clear 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 Shinkong Synthetic with a short position of Ever Clear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Synthetic and Ever Clear.
Diversification Opportunities for Shinkong Synthetic and Ever Clear
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinkong and Ever is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Synthetic Fiber and Ever Clear Environmental Eng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Clear Environme and Shinkong Synthetic 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 Shinkong Synthetic Fiber are associated (or correlated) with Ever Clear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Clear Environme has no effect on the direction of Shinkong Synthetic i.e., Shinkong Synthetic and Ever Clear go up and down completely randomly.
Pair Corralation between Shinkong Synthetic and Ever Clear
Assuming the 90 days trading horizon Shinkong Synthetic Fiber is expected to under-perform the Ever Clear. But the stock apears to be less risky and, when comparing its historical volatility, Shinkong Synthetic Fiber is 1.44 times less risky than Ever Clear. The stock trades about -0.09 of its potential returns per unit of risk. The Ever Clear Environmental Eng is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,765 in Ever Clear Environmental Eng on December 5, 2024 and sell it today you would earn a total of 25.00 from holding Ever Clear Environmental Eng or generate 0.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shinkong Synthetic Fiber vs. Ever Clear Environmental Eng
Performance |
Timeline |
Shinkong Synthetic Fiber |
Ever Clear Environme |
Shinkong Synthetic and Ever Clear Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinkong Synthetic and Ever Clear
The main advantage of trading using opposite Shinkong Synthetic and Ever Clear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Synthetic position performs unexpectedly, Ever Clear 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 Ever Clear will offset losses from the drop in Ever Clear's long position.Shinkong Synthetic vs. Tainan Spinning Co | Shinkong Synthetic vs. Lealea Enterprise Co | Shinkong Synthetic vs. China Petrochemical Development | Shinkong Synthetic vs. Taiwan Styrene Monomer |
Ever Clear vs. AzureWave Technologies | Ever Clear vs. Ho Tung Chemical | Ever Clear vs. Phoenix Silicon International | Ever Clear vs. Sitronix Technology Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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