Correlation Between Kunyue Development and Shinkong Insurance
Can any of the company-specific risk be diversified away by investing in both Kunyue Development and Shinkong Insurance 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 Kunyue Development and Shinkong Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kunyue Development Co and Shinkong Insurance Co, you can compare the effects of market volatilities on Kunyue Development and Shinkong Insurance 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 Kunyue Development with a short position of Shinkong Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunyue Development and Shinkong Insurance.
Diversification Opportunities for Kunyue Development and Shinkong Insurance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kunyue and Shinkong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kunyue Development Co and Shinkong Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong Insurance and Kunyue Development 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 Kunyue Development Co are associated (or correlated) with Shinkong Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinkong Insurance has no effect on the direction of Kunyue Development i.e., Kunyue Development and Shinkong Insurance go up and down completely randomly.
Pair Corralation between Kunyue Development and Shinkong Insurance
Assuming the 90 days trading horizon Kunyue Development Co is expected to generate 1.61 times more return on investment than Shinkong Insurance. However, Kunyue Development is 1.61 times more volatile than Shinkong Insurance Co. It trades about 0.09 of its potential returns per unit of risk. Shinkong Insurance Co is currently generating about 0.13 per unit of risk. If you would invest 3,865 in Kunyue Development Co on October 9, 2024 and sell it today you would earn a total of 425.00 from holding Kunyue Development Co or generate 11.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kunyue Development Co vs. Shinkong Insurance Co
Performance |
Timeline |
Kunyue Development |
Shinkong Insurance |
Kunyue Development and Shinkong Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kunyue Development and Shinkong Insurance
The main advantage of trading using opposite Kunyue Development and Shinkong Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunyue Development position performs unexpectedly, Shinkong Insurance 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 Shinkong Insurance will offset losses from the drop in Shinkong Insurance's long position.Kunyue Development vs. Sun Max Tech | Kunyue Development vs. AzureWave Technologies | Kunyue Development vs. Alchip Technologies | Kunyue Development vs. Hunya Foods Co |
Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding | Shinkong Insurance vs. Chailease Holding Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Stocks Directory Find actively traded stocks across global markets |