Correlation Between G Shank and U Ming
Can any of the company-specific risk be diversified away by investing in both G Shank and U Ming 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 G Shank and U Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Shank Enterprise Co and U Ming Marine Transport, you can compare the effects of market volatilities on G Shank and U Ming 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 G Shank with a short position of U Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Shank and U Ming.
Diversification Opportunities for G Shank and U Ming
Good diversification
The 3 months correlation between 2476 and 2606 is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding G Shank Enterprise Co and U Ming Marine Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Ming Marine and G Shank 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 G Shank Enterprise Co are associated (or correlated) with U Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Ming Marine has no effect on the direction of G Shank i.e., G Shank and U Ming go up and down completely randomly.
Pair Corralation between G Shank and U Ming
Assuming the 90 days trading horizon G Shank Enterprise Co is expected to generate 0.94 times more return on investment than U Ming. However, G Shank Enterprise Co is 1.06 times less risky than U Ming. It trades about 0.08 of its potential returns per unit of risk. U Ming Marine Transport is currently generating about 0.03 per unit of risk. If you would invest 4,312 in G Shank Enterprise Co on September 26, 2024 and sell it today you would earn a total of 4,138 from holding G Shank Enterprise Co or generate 95.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
G Shank Enterprise Co vs. U Ming Marine Transport
Performance |
Timeline |
G Shank Enterprise |
U Ming Marine |
G Shank and U Ming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Shank and U Ming
The main advantage of trading using opposite G Shank and U Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Shank position performs unexpectedly, U Ming 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 U Ming will offset losses from the drop in U Ming's long position.G Shank vs. Yang Ming Marine | G Shank vs. Evergreen Marine Corp | G Shank vs. Eva Airways Corp | G Shank vs. U Ming Marine Transport |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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