Correlation Between Shinkong Insurance and Sirtec International
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Sirtec International 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 Sirtec International 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 Sirtec International Co, you can compare the effects of market volatilities on Shinkong Insurance and Sirtec International 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 Sirtec International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Sirtec International.
Diversification Opportunities for Shinkong Insurance and Sirtec International
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinkong and Sirtec is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Sirtec International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirtec International 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 Sirtec International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirtec International has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Sirtec International go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Sirtec International
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 1.07 times more return on investment than Sirtec International. However, Shinkong Insurance is 1.07 times more volatile than Sirtec International Co. It trades about 0.02 of its potential returns per unit of risk. Sirtec International Co is currently generating about -0.42 per unit of risk. If you would invest 10,150 in Shinkong Insurance Co on September 24, 2024 and sell it today you would earn a total of 50.00 from holding Shinkong Insurance Co or generate 0.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shinkong Insurance Co vs. Sirtec International Co
Performance |
Timeline |
Shinkong Insurance |
Sirtec International |
Shinkong Insurance and Sirtec International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinkong Insurance and Sirtec International
The main advantage of trading using opposite Shinkong Insurance and Sirtec International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Sirtec International 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 Sirtec International will offset losses from the drop in Sirtec International's long position.Shinkong Insurance vs. Taiwan Semiconductor Manufacturing | Shinkong Insurance vs. Hon Hai Precision | Shinkong Insurance vs. MediaTek | Shinkong Insurance vs. Chunghwa Telecom Co |
Sirtec International vs. Advantech Co | Sirtec International vs. IEI Integration Corp | Sirtec International vs. Flytech Technology Co | Sirtec International vs. Ennoconn 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Correlations Find global opportunities by holding instruments from different markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Bonds Directory Find actively traded corporate debentures issued by US companies |