Correlation Between Shihlin Electric and Kinik
Can any of the company-specific risk be diversified away by investing in both Shihlin Electric and Kinik 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 Shihlin Electric and Kinik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shihlin Electric Engineering and Kinik Co, you can compare the effects of market volatilities on Shihlin Electric and Kinik 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 Shihlin Electric with a short position of Kinik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shihlin Electric and Kinik.
Diversification Opportunities for Shihlin Electric and Kinik
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shihlin and Kinik is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shihlin Electric Engineering and Kinik Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinik and Shihlin Electric 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 Shihlin Electric Engineering are associated (or correlated) with Kinik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinik has no effect on the direction of Shihlin Electric i.e., Shihlin Electric and Kinik go up and down completely randomly.
Pair Corralation between Shihlin Electric and Kinik
Assuming the 90 days trading horizon Shihlin Electric Engineering is expected to generate 1.21 times more return on investment than Kinik. However, Shihlin Electric is 1.21 times more volatile than Kinik Co. It trades about 0.09 of its potential returns per unit of risk. Kinik Co is currently generating about 0.09 per unit of risk. If you would invest 6,480 in Shihlin Electric Engineering on August 31, 2024 and sell it today you would earn a total of 13,220 from holding Shihlin Electric Engineering or generate 204.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shihlin Electric Engineering vs. Kinik Co
Performance |
| Timeline |
| Shihlin Electric Eng |
| Kinik |
Shihlin Electric and Kinik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shihlin Electric and Kinik
The main advantage of trading using opposite Shihlin Electric and Kinik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shihlin Electric position performs unexpectedly, Kinik 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 Kinik will offset losses from the drop in Kinik's long position.| Shihlin Electric vs. TECO Electric Machinery | Shihlin Electric vs. Walsin Lihwa Corp | Shihlin Electric vs. Formosa Taffeta Co | Shihlin Electric vs. Far Eastern New |
| Kinik vs. BES Engineering Co | Kinik vs. Continental Holdings Corp | Kinik vs. Kee Tai Properties | Kinik vs. Hung Sheng Construction |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |