Correlation Between Shinkong Synthetic and Fortune Information
Can any of the company-specific risk be diversified away by investing in both Shinkong Synthetic and Fortune Information 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 Fortune Information 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 Fortune Information Systems, you can compare the effects of market volatilities on Shinkong Synthetic and Fortune Information 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 Fortune Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Synthetic and Fortune Information.
Diversification Opportunities for Shinkong Synthetic and Fortune Information
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinkong and Fortune is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Synthetic Fiber and Fortune Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortune Information 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 Fortune Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortune Information has no effect on the direction of Shinkong Synthetic i.e., Shinkong Synthetic and Fortune Information go up and down completely randomly.
Pair Corralation between Shinkong Synthetic and Fortune Information
Assuming the 90 days trading horizon Shinkong Synthetic Fiber is expected to generate 0.45 times more return on investment than Fortune Information. However, Shinkong Synthetic Fiber is 2.21 times less risky than Fortune Information. It trades about -0.01 of its potential returns per unit of risk. Fortune Information Systems is currently generating about -0.01 per unit of risk. If you would invest 1,780 in Shinkong Synthetic Fiber on September 3, 2024 and sell it today you would lose (190.00) from holding Shinkong Synthetic Fiber or give up 10.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Synthetic Fiber vs. Fortune Information Systems
Performance |
| Timeline |
| Shinkong Synthetic Fiber |
| Fortune Information |
Shinkong Synthetic and Fortune Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Synthetic and Fortune Information
The main advantage of trading using opposite Shinkong Synthetic and Fortune Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Synthetic position performs unexpectedly, Fortune Information 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 Fortune Information will offset losses from the drop in Fortune Information's long position.The idea behind Shinkong Synthetic Fiber and Fortune Information Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fortune Information vs. Taiwan Semiconductor Manufacturing | Fortune Information vs. Yang Ming Marine | Fortune Information vs. ASE Industrial Holding | Fortune Information vs. AU Optronics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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