Correlation Between Shin Kong and TUL
Can any of the company-specific risk be diversified away by investing in both Shin Kong and TUL 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 Shin Kong and TUL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Kong Financial and TUL Corporation, you can compare the effects of market volatilities on Shin Kong and TUL 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 Shin Kong with a short position of TUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Kong and TUL.
Diversification Opportunities for Shin Kong and TUL
Pay attention - limited upside
The 3 months correlation between Shin and TUL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shin Kong Financial and TUL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUL Corporation and Shin Kong 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 Shin Kong Financial are associated (or correlated) with TUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUL Corporation has no effect on the direction of Shin Kong i.e., Shin Kong and TUL go up and down completely randomly.
Pair Corralation between Shin Kong and TUL
If you would invest 1,185 in Shin Kong Financial on October 23, 2024 and sell it today you would earn a total of 25.00 from holding Shin Kong Financial or generate 2.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Shin Kong Financial vs. TUL Corp.
Performance |
Timeline |
Shin Kong Financial |
TUL Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shin Kong and TUL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shin Kong and TUL
The main advantage of trading using opposite Shin Kong and TUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Kong position performs unexpectedly, TUL 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 TUL will offset losses from the drop in TUL's long position.Shin Kong vs. Cathay Financial Holding | Shin Kong vs. Taishin Financial Holding | Shin Kong vs. Fubon Financial Holding | Shin Kong vs. CTBC Financial Holding |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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