Correlation Between De Licacy and Shin Ruenn
Can any of the company-specific risk be diversified away by investing in both De Licacy and Shin Ruenn 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 De Licacy and Shin Ruenn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Licacy Industrial and Shin Ruenn Development, you can compare the effects of market volatilities on De Licacy and Shin Ruenn 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 De Licacy with a short position of Shin Ruenn. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Licacy and Shin Ruenn.
Diversification Opportunities for De Licacy and Shin Ruenn
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 1464 and Shin is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding De Licacy Industrial and Shin Ruenn Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Ruenn Development and De Licacy 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 De Licacy Industrial are associated (or correlated) with Shin Ruenn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Ruenn Development has no effect on the direction of De Licacy i.e., De Licacy and Shin Ruenn go up and down completely randomly.
Pair Corralation between De Licacy and Shin Ruenn
Assuming the 90 days trading horizon De Licacy Industrial is expected to under-perform the Shin Ruenn. In addition to that, De Licacy is 1.16 times more volatile than Shin Ruenn Development. It trades about -0.04 of its total potential returns per unit of risk. Shin Ruenn Development is currently generating about 0.09 per unit of volatility. If you would invest 6,030 in Shin Ruenn Development on August 26, 2024 and sell it today you would earn a total of 250.00 from holding Shin Ruenn Development or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Licacy Industrial vs. Shin Ruenn Development
Performance |
| Timeline |
| De Licacy Industrial |
| Shin Ruenn Development |
De Licacy and Shin Ruenn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Licacy and Shin Ruenn
The main advantage of trading using opposite De Licacy and Shin Ruenn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Licacy position performs unexpectedly, Shin Ruenn 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 Shin Ruenn will offset losses from the drop in Shin Ruenn's long position.| De Licacy vs. Tainan Enterprises Co | De Licacy vs. Nien Hsing Textile | De Licacy vs. Wisher Industrial Co | De Licacy vs. Tex Ray Industrial Co |
| Shin Ruenn vs. Standard Foods Corp | Shin Ruenn vs. Jentech Precision Industrial | Shin Ruenn vs. De Licacy Industrial | Shin Ruenn vs. Shuang Bang Industrial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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