Correlation Between Shin Tai and Run Long
Can any of the company-specific risk be diversified away by investing in both Shin Tai and Run Long 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 Tai and Run Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Tai Industry and Run Long Construction, you can compare the effects of market volatilities on Shin Tai and Run Long 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 Tai with a short position of Run Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Tai and Run Long.
Diversification Opportunities for Shin Tai and Run Long
Very good diversification
The 3 months correlation between Shin and Run is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shin Tai Industry and Run Long Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Run Long Construction and Shin Tai 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 Tai Industry are associated (or correlated) with Run Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Run Long Construction has no effect on the direction of Shin Tai i.e., Shin Tai and Run Long go up and down completely randomly.
Pair Corralation between Shin Tai and Run Long
Assuming the 90 days trading horizon Shin Tai Industry is expected to generate 0.74 times more return on investment than Run Long. However, Shin Tai Industry is 1.35 times less risky than Run Long. It trades about 0.32 of its potential returns per unit of risk. Run Long Construction is currently generating about -0.1 per unit of risk. If you would invest 9,010 in Shin Tai Industry on January 12, 2025 and sell it today you would earn a total of 1,740 from holding Shin Tai Industry or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Tai Industry vs. Run Long Construction
Performance |
| Timeline |
| Shin Tai Industry |
| Run Long Construction |
Shin Tai and Run Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Tai and Run Long
The main advantage of trading using opposite Shin Tai and Run Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Tai position performs unexpectedly, Run Long 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 Run Long will offset losses from the drop in Run Long's long position.| Shin Tai vs. Standard Foods Corp | Shin Tai vs. TTET Union Corp | Shin Tai vs. Great Wall Enterprise | Shin Tai vs. Lian Hwa Foods |
| Run Long vs. Highwealth Construction Corp | Run Long vs. Chong Hong Construction | Run Long vs. Farglory Land Development | Run Long vs. Huaku Development Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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