Correlation Between Shinkong Insurance and G Shank

Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and G Shank 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 Insurance and G Shank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shinkong Insurance Co and G Shank Enterprise Co, you can compare the effects of market volatilities on Shinkong Insurance and G Shank 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 Insurance with a short position of G Shank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and G Shank.

Diversification Opportunities for Shinkong Insurance and G Shank

-0.58

Correlation Coefficient

Shinkong Insurance  G Shank

Excellent diversification

The 3 months correlation between Shinkong and 2476 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and G Shank Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Shank Enterprise and Shinkong Insurance 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 Insurance Co are associated (or correlated) with G Shank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Shank Enterprise has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and G Shank go up and down completely randomly.

Pair Corralation between Shinkong Insurance and G Shank

Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 0.68 times more return on investment than G Shank. However, Shinkong Insurance Co is 1.47 times less risky than G Shank. It trades about 0.12 of its potential returns per unit of risk. G Shank Enterprise Co is currently generating about 0.08 per unit of risk. If you would invest  4,960  in Shinkong Insurance Co on September 26, 2024 and sell it today you would earn a total of  5,590  from holding Shinkong Insurance Co or generate 112.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Shinkong Insurance Co  vs.  G Shank Enterprise Co

Shinkong Insurance

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Shinkong Insurance Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Shinkong Insurance may actually be approaching a critical reversion point that can send shares even higher in January 2025.

G Shank Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G Shank Enterprise Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Shinkong Insurance and G Shank

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

The idea behind Shinkong Insurance Co and G Shank Enterprise Co 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 Commodity Directory module to find actively traded commodities issued by global exchanges.