Correlation Between Shin Ruenn and Green World

Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Green World 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 Ruenn and Green World into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shin Ruenn Development and Green World Fintech, you can compare the effects of market volatilities on Shin Ruenn and Green World 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 Ruenn with a short position of Green World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Green World.

Diversification Opportunities for Shin Ruenn and Green World

-0.69

Correlation Coefficient

Shin Ruenn  Green World

Excellent diversification

The 3 months correlation between Shin and Green is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Green World Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green World Fintech and Shin Ruenn 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 Ruenn Development are associated (or correlated) with Green World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green World Fintech has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Green World go up and down completely randomly.

Pair Corralation between Shin Ruenn and Green World

Assuming the 90 days trading horizon Shin Ruenn is expected to generate 2.06 times less return on investment than Green World. But when comparing it to its historical volatility, Shin Ruenn Development is 1.47 times less risky than Green World. It trades about 0.06 of its potential returns per unit of risk. Green World Fintech is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,110  in Green World Fintech on September 22, 2024 and sell it today you would earn a total of  4,090  from holding Green World Fintech or generate 193.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.58%
Values	Daily Returns

Shin Ruenn Development  vs.  Green World Fintech

Shin Ruenn Development

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shin Ruenn Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Green World Fintech

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Green World Fintech are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Green World showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shin Ruenn and Green World

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

The idea behind Shin Ruenn Development and Green World Fintech 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.