Correlation Between Wisher Industrial and Shin Tai
Can any of the company-specific risk be diversified away by investing in both Wisher Industrial and Shin Tai 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 Wisher Industrial and Shin Tai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisher Industrial Co and Shin Tai Industry, you can compare the effects of market volatilities on Wisher Industrial and Shin Tai 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 Wisher Industrial with a short position of Shin Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisher Industrial and Shin Tai.
Diversification Opportunities for Wisher Industrial and Shin Tai
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wisher and Shin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Wisher Industrial Co and Shin Tai Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Tai Industry and Wisher Industrial 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 Wisher Industrial Co are associated (or correlated) with Shin Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Tai Industry has no effect on the direction of Wisher Industrial i.e., Wisher Industrial and Shin Tai go up and down completely randomly.
Pair Corralation between Wisher Industrial and Shin Tai
Assuming the 90 days trading horizon Wisher Industrial Co is expected to under-perform the Shin Tai. But the stock apears to be less risky and, when comparing its historical volatility, Wisher Industrial Co is 2.16 times less risky than Shin Tai. The stock trades about -0.08 of its potential returns per unit of risk. The Shin Tai Industry is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 15,250 in Shin Tai Industry on August 31, 2024 and sell it today you would lose (600.00) from holding Shin Tai Industry or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Wisher Industrial Co vs. Shin Tai Industry
Performance |
| Timeline |
| Wisher Industrial |
| Shin Tai Industry |
Wisher Industrial and Shin Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisher Industrial and Shin Tai
The main advantage of trading using opposite Wisher Industrial and Shin Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisher Industrial position performs unexpectedly, Shin Tai 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 Tai will offset losses from the drop in Shin Tai's long position.| Wisher Industrial vs. De Licacy Industrial | Wisher Industrial vs. Nien Hsing Textile | Wisher Industrial vs. Tainan Enterprises Co | Wisher Industrial vs. Tex Ray Industrial Co |
| Shin Tai vs. Taisun Enterprise Co | Shin Tai vs. De Licacy Industrial | Shin Tai vs. Wisher Industrial Co | Shin Tai vs. Tainan Enterprises Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |