Correlation Between Shin Hai and Golden Biotechnology
Can any of the company-specific risk be diversified away by investing in both Shin Hai and Golden Biotechnology 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 Hai and Golden Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Hai Gas and Golden Biotechnology, you can compare the effects of market volatilities on Shin Hai and Golden Biotechnology 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 Hai with a short position of Golden Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Hai and Golden Biotechnology.
Diversification Opportunities for Shin Hai and Golden Biotechnology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shin and Golden is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shin Hai Gas and Golden Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Biotechnology and Shin Hai 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 Hai Gas are associated (or correlated) with Golden Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Biotechnology has no effect on the direction of Shin Hai i.e., Shin Hai and Golden Biotechnology go up and down completely randomly.
Pair Corralation between Shin Hai and Golden Biotechnology
Assuming the 90 days trading horizon Shin Hai Gas is expected to generate 0.27 times more return on investment than Golden Biotechnology. However, Shin Hai Gas is 3.66 times less risky than Golden Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Golden Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 5,120 in Shin Hai Gas on December 30, 2024 and sell it today you would earn a total of 30.00 from holding Shin Hai Gas or generate 0.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shin Hai Gas vs. Golden Biotechnology
Performance |
Timeline |
Shin Hai Gas |
Golden Biotechnology |
Shin Hai and Golden Biotechnology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shin Hai and Golden Biotechnology
The main advantage of trading using opposite Shin Hai and Golden Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Hai position performs unexpectedly, Golden Biotechnology 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 Golden Biotechnology will offset losses from the drop in Golden Biotechnology's long position.Shin Hai vs. Central Reinsurance Corp | Shin Hai vs. Power Wind Health | Shin Hai vs. Phytohealth Corp | Shin Hai vs. Jia Jie Biomedical |
Golden Biotechnology vs. Formosa International Hotels | Golden Biotechnology vs. Power Wind Health | Golden Biotechnology vs. Ambassador Hotel | Golden Biotechnology vs. Mercuries Life Insurance |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |