Correlation Between Shinih Enterprise and Victory New
Can any of the company-specific risk be diversified away by investing in both Shinih Enterprise and Victory New 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 Shinih Enterprise and Victory New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinih Enterprise Co and Victory New Materials, you can compare the effects of market volatilities on Shinih Enterprise and Victory New 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 Shinih Enterprise with a short position of Victory New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinih Enterprise and Victory New.
Diversification Opportunities for Shinih Enterprise and Victory New
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinih and Victory is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shinih Enterprise Co and Victory New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory New Materials and Shinih Enterprise 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 Shinih Enterprise Co are associated (or correlated) with Victory New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory New Materials has no effect on the direction of Shinih Enterprise i.e., Shinih Enterprise and Victory New go up and down completely randomly.
Pair Corralation between Shinih Enterprise and Victory New
Assuming the 90 days trading horizon Shinih Enterprise Co is expected to generate 0.88 times more return on investment than Victory New. However, Shinih Enterprise Co is 1.13 times less risky than Victory New. It trades about 0.01 of its potential returns per unit of risk. Victory New Materials is currently generating about -0.01 per unit of risk. If you would invest 2,035 in Shinih Enterprise Co on December 5, 2024 and sell it today you would lose (5.00) from holding Shinih Enterprise Co or give up 0.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
Shinih Enterprise Co vs. Victory New Materials
Performance |
Timeline |
Shinih Enterprise |
Victory New Materials |
Shinih Enterprise and Victory New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinih Enterprise and Victory New
The main advantage of trading using opposite Shinih Enterprise and Victory New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinih Enterprise position performs unexpectedly, Victory New 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 Victory New will offset losses from the drop in Victory New's long position.Shinih Enterprise vs. Ton Yi Industrial | Shinih Enterprise vs. Super Dragon Technology | Shinih Enterprise vs. Min Aik Technology | Shinih Enterprise vs. Hung Sheng Construction |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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