Correlation Between Iron Force and Shinkong Insurance
Can any of the company-specific risk be diversified away by investing in both Iron Force and Shinkong Insurance 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 Iron Force and Shinkong Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iron Force Industrial and Shinkong Insurance Co, you can compare the effects of market volatilities on Iron Force and Shinkong Insurance 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 Iron Force with a short position of Shinkong Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iron Force and Shinkong Insurance.
Diversification Opportunities for Iron Force and Shinkong Insurance
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iron and Shinkong is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Iron Force Industrial and Shinkong Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong Insurance and Iron Force 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 Iron Force Industrial are associated (or correlated) with Shinkong Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinkong Insurance has no effect on the direction of Iron Force i.e., Iron Force and Shinkong Insurance go up and down completely randomly.
Pair Corralation between Iron Force and Shinkong Insurance
Assuming the 90 days trading horizon Iron Force Industrial is expected to under-perform the Shinkong Insurance. In addition to that, Iron Force is 1.4 times more volatile than Shinkong Insurance Co. It trades about -0.22 of its total potential returns per unit of risk. Shinkong Insurance Co is currently generating about 0.09 per unit of volatility. If you would invest 9,820 in Shinkong Insurance Co on September 1, 2024 and sell it today you would earn a total of 180.00 from holding Shinkong Insurance Co or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iron Force Industrial vs. Shinkong Insurance Co
Performance |
| Timeline |
| Iron Force Industrial |
| Shinkong Insurance |
Iron Force and Shinkong Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iron Force and Shinkong Insurance
The main advantage of trading using opposite Iron Force and Shinkong Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iron Force position performs unexpectedly, Shinkong Insurance 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 Insurance will offset losses from the drop in Shinkong Insurance's long position.| Iron Force vs. Hota Industrial Mfg | Iron Force vs. BizLink Holding | Iron Force vs. Cub Elecparts | Iron Force vs. Hu Lane Associate |
| Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |