Correlation Between Sampo Corp and Zeng Hsing
Can any of the company-specific risk be diversified away by investing in both Sampo Corp and Zeng Hsing 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 Sampo Corp and Zeng Hsing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sampo Corp and Zeng Hsing Industrial, you can compare the effects of market volatilities on Sampo Corp and Zeng Hsing 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 Sampo Corp with a short position of Zeng Hsing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Corp and Zeng Hsing.
Diversification Opportunities for Sampo Corp and Zeng Hsing
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sampo and Zeng is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Corp and Zeng Hsing Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeng Hsing Industrial and Sampo Corp 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 Sampo Corp are associated (or correlated) with Zeng Hsing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeng Hsing Industrial has no effect on the direction of Sampo Corp i.e., Sampo Corp and Zeng Hsing go up and down completely randomly.
Pair Corralation between Sampo Corp and Zeng Hsing
Assuming the 90 days trading horizon Sampo Corp is expected to under-perform the Zeng Hsing. But the stock apears to be less risky and, when comparing its historical volatility, Sampo Corp is 2.08 times less risky than Zeng Hsing. The stock trades about -0.01 of its potential returns per unit of risk. The Zeng Hsing Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,674 in Zeng Hsing Industrial on October 25, 2024 and sell it today you would earn a total of 926.00 from holding Zeng Hsing Industrial or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sampo Corp vs. Zeng Hsing Industrial
Performance |
| Timeline |
| Sampo Corp |
| Zeng Hsing Industrial |
Sampo Corp and Zeng Hsing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Corp and Zeng Hsing
The main advantage of trading using opposite Sampo Corp and Zeng Hsing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Corp position performs unexpectedly, Zeng Hsing 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 Zeng Hsing will offset losses from the drop in Zeng Hsing's long position.| Sampo Corp vs. TECO Electric Machinery | Sampo Corp vs. Walsin Lihwa Corp | Sampo Corp vs. Asia Cement Corp | Sampo Corp vs. Far Eastern New |
| Zeng Hsing vs. TTET Union Corp | Zeng Hsing vs. Shinkong Insurance Co | Zeng Hsing vs. Huaku Development Co | Zeng Hsing vs. China Steel Chemical |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| 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 Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |