Correlation Between Charoen Pokphand and Shin Shin
Can any of the company-specific risk be diversified away by investing in both Charoen Pokphand 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 Charoen Pokphand and Shin Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charoen Pokphand Enterprise and Shin Shin Co, you can compare the effects of market volatilities on Charoen Pokphand 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 Charoen Pokphand with a short position of Shin Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charoen Pokphand and Shin Shin.
Diversification Opportunities for Charoen Pokphand and Shin Shin
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Charoen and Shin is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Charoen Pokphand Enterprise and Shin Shin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Shin and Charoen Pokphand 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 Charoen Pokphand Enterprise 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 Charoen Pokphand i.e., Charoen Pokphand and Shin Shin go up and down completely randomly.
Pair Corralation between Charoen Pokphand and Shin Shin
Assuming the 90 days trading horizon Charoen Pokphand Enterprise is expected to generate 1.1 times more return on investment than Shin Shin. However, Charoen Pokphand is 1.1 times more volatile than Shin Shin Co. It trades about 0.43 of its potential returns per unit of risk. Shin Shin Co is currently generating about 0.03 per unit of risk. If you would invest 9,100 in Charoen Pokphand Enterprise on November 30, 2024 and sell it today you would earn a total of 1,150 from holding Charoen Pokphand Enterprise or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charoen Pokphand Enterprise vs. Shin Shin Co
Performance |
| Timeline |
| Charoen Pokphand Ent |
| Shin Shin |
Charoen Pokphand and Shin Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charoen Pokphand and Shin Shin
The main advantage of trading using opposite Charoen Pokphand and Shin Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charoen Pokphand 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.| Charoen Pokphand vs. Great Wall Enterprise | Charoen Pokphand vs. TTET Union Corp | Charoen Pokphand vs. Uni President Enterprises Corp | Charoen Pokphand vs. Lien Hwa Industrial |
| Shin Shin vs. First Hotel Co | Shin Shin vs. Hung Sheng Construction | Shin Shin vs. Chainqui Construction Development |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| 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 |