Correlation Between Shinkong Synthetic and Singtex Industrial
Can any of the company-specific risk be diversified away by investing in both Shinkong Synthetic and Singtex Industrial 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 Singtex Industrial 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 Singtex Industrial Co, you can compare the effects of market volatilities on Shinkong Synthetic and Singtex Industrial 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 Singtex Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Synthetic and Singtex Industrial.
Diversification Opportunities for Shinkong Synthetic and Singtex Industrial
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinkong and Singtex is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Synthetic Fiber and Singtex Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singtex Industrial 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 Singtex Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singtex Industrial has no effect on the direction of Shinkong Synthetic i.e., Shinkong Synthetic and Singtex Industrial go up and down completely randomly.
Pair Corralation between Shinkong Synthetic and Singtex Industrial
Assuming the 90 days trading horizon Shinkong Synthetic Fiber is expected to under-perform the Singtex Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Shinkong Synthetic Fiber is 1.19 times less risky than Singtex Industrial. The stock trades about -0.01 of its potential returns per unit of risk. The Singtex Industrial Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,904 in Singtex Industrial Co on September 13, 2024 and sell it today you would lose (134.00) from holding Singtex Industrial Co or give up 4.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Synthetic Fiber vs. Singtex Industrial Co
Performance |
| Timeline |
| Shinkong Synthetic Fiber |
| Singtex Industrial |
Shinkong Synthetic and Singtex Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Synthetic and Singtex Industrial
The main advantage of trading using opposite Shinkong Synthetic and Singtex Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Synthetic position performs unexpectedly, Singtex Industrial 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 Singtex Industrial will offset losses from the drop in Singtex Industrial's long position.| Shinkong Synthetic vs. Tainan Spinning Co | Shinkong Synthetic vs. Lealea Enterprise Co | Shinkong Synthetic vs. China Petrochemical Development | Shinkong Synthetic vs. Ruentex Development Co |
| Singtex Industrial vs. Eclat Textile Co | Singtex Industrial vs. Ruentex Industries | Singtex Industrial vs. Shinkong Synthetic Fiber | Singtex Industrial vs. Taiwan Paiho |
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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