Correlation Between Shinkong Insurance and Tait Marketing
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Tait Marketing 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 Tait Marketing 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 Tait Marketing Distribution, you can compare the effects of market volatilities on Shinkong Insurance and Tait Marketing 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 Tait Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Tait Marketing.
Diversification Opportunities for Shinkong Insurance and Tait Marketing
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinkong and Tait is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Tait Marketing Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tait Marketing Distr 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 Tait Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tait Marketing Distr has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Tait Marketing go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Tait Marketing
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 1.0 times more return on investment than Tait Marketing. However, Shinkong Insurance is 1.0 times more volatile than Tait Marketing Distribution. It trades about 0.12 of its potential returns per unit of risk. Tait Marketing Distribution is currently generating about 0.04 per unit of risk. If you would invest 4,835 in Shinkong Insurance Co on September 19, 2024 and sell it today you would earn a total of 5,715 from holding Shinkong Insurance Co or generate 118.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shinkong Insurance Co vs. Tait Marketing Distribution
Performance |
Timeline |
Shinkong Insurance |
Tait Marketing Distr |
Shinkong Insurance and Tait Marketing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinkong Insurance and Tait Marketing
The main advantage of trading using opposite Shinkong Insurance and Tait Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Tait Marketing 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 Tait Marketing will offset losses from the drop in Tait Marketing's long position.Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding | Shinkong Insurance vs. Chailease Holding Co |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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