Correlation Between Kingcan Holdings and Shin Shin

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

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

Diversification Opportunities for Kingcan Holdings and Shin Shin

0.17

Correlation Coefficient

Kingcan Holdings  Shin Shin

Average diversification

The 3 months correlation between Kingcan and Shin is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kingcan Holdings and Shin Shin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Shin and Kingcan Holdings 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 Kingcan Holdings are associated (or correlated) with Shin Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Shin has no effect on the direction of Kingcan Holdings i.e., Kingcan Holdings and Shin Shin go up and down completely randomly.

Pair Corralation between Kingcan Holdings and Shin Shin

Assuming the 90 days trading horizon Kingcan Holdings is expected to under-perform the Shin Shin. In addition to that, Kingcan Holdings is 1.03 times more volatile than Shin Shin Co. It trades about -0.09 of its total potential returns per unit of risk. Shin Shin Co is currently generating about -0.02 per unit of volatility. If you would invest  2,770  in Shin Shin Co on October 23, 2024 and sell it today you would lose (45.00) from holding Shin Shin Co or give up 1.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Kingcan Holdings  vs.  Shin Shin Co

Kingcan Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kingcan Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kingcan Holdings is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Shin Shin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shin Shin Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Shin Shin is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kingcan Holdings and Shin Shin

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

The idea behind Kingcan Holdings and Shin Shin Co 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.