Correlation Between TYC Brother and Shinkong Synthetic
Can any of the company-specific risk be diversified away by investing in both TYC Brother 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 TYC Brother and Shinkong Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TYC Brother Industrial and Shinkong Synthetic Fiber, you can compare the effects of market volatilities on TYC Brother 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 TYC Brother with a short position of Shinkong Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of TYC Brother and Shinkong Synthetic.
Diversification Opportunities for TYC Brother and Shinkong Synthetic
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TYC and Shinkong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding TYC Brother Industrial 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 TYC Brother 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 TYC Brother Industrial 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 TYC Brother i.e., TYC Brother and Shinkong Synthetic go up and down completely randomly.
Pair Corralation between TYC Brother and Shinkong Synthetic
Assuming the 90 days trading horizon TYC Brother Industrial is expected to generate 1.76 times more return on investment than Shinkong Synthetic. However, TYC Brother is 1.76 times more volatile than Shinkong Synthetic Fiber. It trades about 0.08 of its potential returns per unit of risk. Shinkong Synthetic Fiber is currently generating about 0.02 per unit of risk. If you would invest 4,270 in TYC Brother Industrial on September 2, 2024 and sell it today you would earn a total of 2,210 from holding TYC Brother Industrial or generate 51.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TYC Brother Industrial vs. Shinkong Synthetic Fiber
Performance |
| Timeline |
| TYC Brother Industrial |
| Shinkong Synthetic Fiber |
TYC Brother and Shinkong Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TYC Brother and Shinkong Synthetic
The main advantage of trading using opposite TYC Brother and Shinkong Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TYC Brother 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.| TYC Brother vs. Tong Yang Industry | TYC Brother vs. Ta Yih Industrial | TYC Brother vs. Basso Industry Corp | TYC Brother vs. China Motor Corp |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance |