Correlation Between YuantaP Shares and Shinkong Insurance
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares 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 YuantaP Shares and Shinkong Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YuantaP shares Taiwan Top and Shinkong Insurance Co, you can compare the effects of market volatilities on YuantaP Shares 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 YuantaP Shares with a short position of Shinkong Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Shinkong Insurance.
Diversification Opportunities for YuantaP Shares and Shinkong Insurance
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YuantaP and Shinkong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Shinkong Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong Insurance and YuantaP Shares 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 YuantaP shares Taiwan Top 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 YuantaP Shares i.e., YuantaP Shares and Shinkong Insurance go up and down completely randomly.
Pair Corralation between YuantaP Shares and Shinkong Insurance
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 1.08 times more return on investment than Shinkong Insurance. However, YuantaP Shares is 1.08 times more volatile than Shinkong Insurance Co. It trades about 0.06 of its potential returns per unit of risk. Shinkong Insurance Co is currently generating about 0.03 per unit of risk. If you would invest 16,516 in YuantaP shares Taiwan Top on August 29, 2024 and sell it today you would earn a total of 2,194 from holding YuantaP shares Taiwan Top or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.03% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Shinkong Insurance Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Shinkong Insurance |
YuantaP Shares and Shinkong Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Shinkong Insurance
The main advantage of trading using opposite YuantaP Shares and Shinkong Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares 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.| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Symtek Automation Asia | YuantaP Shares vs. CTCI Corp | YuantaP Shares vs. Information Technology Total |
| Shinkong Insurance vs. Taiwan Secom Co | Shinkong Insurance vs. TTET Union Corp | Shinkong Insurance vs. China Steel Chemical | Shinkong Insurance vs. Taiwan Shin Kong |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |