Correlation Between Shinkong Synthetic and TSRC Corp
Can any of the company-specific risk be diversified away by investing in both Shinkong Synthetic and TSRC 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 Shinkong Synthetic and TSRC Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinkong Synthetic Fiber and TSRC Corp, you can compare the effects of market volatilities on Shinkong Synthetic and TSRC 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 Shinkong Synthetic with a short position of TSRC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Synthetic and TSRC Corp.
Diversification Opportunities for Shinkong Synthetic and TSRC Corp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shinkong and TSRC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Synthetic Fiber and TSRC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSRC Corp and Shinkong Synthetic 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 Shinkong Synthetic Fiber are associated (or correlated) with TSRC Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSRC Corp has no effect on the direction of Shinkong Synthetic i.e., Shinkong Synthetic and TSRC Corp go up and down completely randomly.
Pair Corralation between Shinkong Synthetic and TSRC Corp
Assuming the 90 days trading horizon Shinkong Synthetic Fiber is expected to generate 1.02 times more return on investment than TSRC Corp. However, Shinkong Synthetic is 1.02 times more volatile than TSRC Corp. It trades about -0.1 of its potential returns per unit of risk. TSRC Corp is currently generating about -0.11 per unit of risk. If you would invest 1,570 in Shinkong Synthetic Fiber on January 18, 2025 and sell it today you would lose (350.00) from holding Shinkong Synthetic Fiber or give up 22.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Synthetic Fiber vs. TSRC Corp
Performance |
| Timeline |
| Shinkong Synthetic Fiber |
| TSRC Corp |
Shinkong Synthetic and TSRC Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Synthetic and TSRC Corp
The main advantage of trading using opposite Shinkong Synthetic and TSRC Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Synthetic position performs unexpectedly, TSRC 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 TSRC Corp will offset losses from the drop in TSRC Corp's long position.| Shinkong Synthetic vs. Tainan Spinning Co | Shinkong Synthetic vs. Lealea Enterprise Co | Shinkong Synthetic vs. China Petrochemical Development | Shinkong Synthetic vs. Taiwan Styrene Monomer |
| TSRC Corp vs. STL Technology Co | TSRC Corp vs. Chung Lien Transportation | TSRC Corp vs. S Tech Corp | TSRC Corp vs. Ichia Technologies |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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