Correlation Between Li Peng and Shinkong Synthetic
Can any of the company-specific risk be diversified away by investing in both Li Peng and Shinkong Synthetic 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 Li Peng and Shinkong Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Li Peng Enterprise and Shinkong Synthetic Fiber, you can compare the effects of market volatilities on Li Peng and Shinkong Synthetic 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 Li Peng with a short position of Shinkong Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Peng and Shinkong Synthetic.
Diversification Opportunities for Li Peng and Shinkong Synthetic
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 1447 and Shinkong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Li Peng Enterprise and Shinkong Synthetic Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong Synthetic Fiber and Li Peng 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 Li Peng Enterprise are associated (or correlated) with Shinkong Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinkong Synthetic Fiber has no effect on the direction of Li Peng i.e., Li Peng and Shinkong Synthetic go up and down completely randomly.
Pair Corralation between Li Peng and Shinkong Synthetic
Assuming the 90 days trading horizon Li Peng Enterprise is expected to under-perform the Shinkong Synthetic. In addition to that, Li Peng is 1.72 times more volatile than Shinkong Synthetic Fiber. It trades about -0.07 of its total potential returns per unit of risk. Shinkong Synthetic Fiber is currently generating about 0.05 per unit of volatility. If you would invest 1,555 in Shinkong Synthetic Fiber on August 25, 2024 and sell it today you would earn a total of 15.00 from holding Shinkong Synthetic Fiber or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Li Peng Enterprise vs. Shinkong Synthetic Fiber
Performance |
| Timeline |
| Li Peng Enterprise |
| Shinkong Synthetic Fiber |
Li Peng and Shinkong Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Peng and Shinkong Synthetic
The main advantage of trading using opposite Li Peng and Shinkong Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Peng position performs unexpectedly, Shinkong Synthetic 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 Shinkong Synthetic will offset losses from the drop in Shinkong Synthetic's long position.| Li Peng vs. Gigastorage Corp | Li Peng vs. CHINA DEVELOPMENT FINANCIAL | Li Peng vs. AVer Information | Li Peng vs. EnTie Commercial Bank |
| Shinkong Synthetic vs. Tainan Spinning Co | Shinkong Synthetic vs. Lealea Enterprise Co | Shinkong Synthetic vs. China Petrochemical Development | Shinkong Synthetic vs. Taiwan Styrene Monomer |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |