Correlation Between An Shin and CVC Technologies
Can any of the company-specific risk be diversified away by investing in both An Shin and CVC Technologies 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 An Shin and CVC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Shin Food Services and CVC Technologies, you can compare the effects of market volatilities on An Shin and CVC Technologies 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 An Shin with a short position of CVC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Shin and CVC Technologies.
Diversification Opportunities for An Shin and CVC Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 1259 and CVC is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding An Shin Food Services and CVC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVC Technologies and An Shin 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 An Shin Food Services are associated (or correlated) with CVC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVC Technologies has no effect on the direction of An Shin i.e., An Shin and CVC Technologies go up and down completely randomly.
Pair Corralation between An Shin and CVC Technologies
Assuming the 90 days trading horizon An Shin Food Services is expected to under-perform the CVC Technologies. But the stock apears to be less risky and, when comparing its historical volatility, An Shin Food Services is 2.5 times less risky than CVC Technologies. The stock trades about -0.11 of its potential returns per unit of risk. The CVC Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,195 in CVC Technologies on October 29, 2024 and sell it today you would lose (10.00) from holding CVC Technologies or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Shin Food Services vs. CVC Technologies
Performance |
| Timeline |
| An Shin Food |
| CVC Technologies |
An Shin and CVC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Shin and CVC Technologies
The main advantage of trading using opposite An Shin and CVC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Shin position performs unexpectedly, CVC Technologies 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 CVC Technologies will offset losses from the drop in CVC Technologies' long position.| An Shin vs. ANJI Technology Co | An Shin vs. China Times Publishing | An Shin vs. China Metal Products | An Shin vs. ADLINK Technology |
| CVC Technologies vs. Wha Yu Industrial | CVC Technologies vs. International CSRC Investment | CVC Technologies vs. Excelsior Medical Co | CVC Technologies vs. SuperAlloy Industrial 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| 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 | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |