Correlation Between Shin Tai and Zenitron Corp
Can any of the company-specific risk be diversified away by investing in both Shin Tai and Zenitron Corp 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 Zenitron Corp 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 Zenitron Corp, you can compare the effects of market volatilities on Shin Tai and Zenitron Corp 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 Zenitron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Tai and Zenitron Corp.
Diversification Opportunities for Shin Tai and Zenitron Corp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shin and Zenitron is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shin Tai Industry and Zenitron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenitron Corp 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 Zenitron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenitron Corp has no effect on the direction of Shin Tai i.e., Shin Tai and Zenitron Corp go up and down completely randomly.
Pair Corralation between Shin Tai and Zenitron Corp
Assuming the 90 days trading horizon Shin Tai Industry is expected to generate 3.66 times more return on investment than Zenitron Corp. However, Shin Tai is 3.66 times more volatile than Zenitron Corp. It trades about 0.14 of its potential returns per unit of risk. Zenitron Corp is currently generating about 0.39 per unit of risk. If you would invest 8,050 in Shin Tai Industry on November 30, 2024 and sell it today you would earn a total of 850.00 from holding Shin Tai Industry or generate 10.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.0% |
Values | Daily Returns |
Shin Tai Industry vs. Zenitron Corp
Performance |
Timeline |
Shin Tai Industry |
Zenitron Corp |
Shin Tai and Zenitron Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shin Tai and Zenitron Corp
The main advantage of trading using opposite Shin Tai and Zenitron Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Tai position performs unexpectedly, Zenitron Corp 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 Zenitron Corp will offset losses from the drop in Zenitron Corp's long position.Shin Tai vs. Fwusow Industry Co | ||
Shin Tai vs. TTET Union Corp | ||
Shin Tai vs. Lian Hwa Foods | ||
Shin Tai vs. Formosa Oilseed Processing |
Zenitron Corp vs. Weikeng Industrial Co | ||
Zenitron Corp vs. WT Microelectronics Co | ||
Zenitron Corp vs. Edom Technology Co | ||
Zenitron Corp vs. Wah Lee Industrial |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |