Correlation Between Chicony Electronics and Shin Zu
Can any of the company-specific risk be diversified away by investing in both Chicony Electronics and Shin Zu 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 Chicony Electronics and Shin Zu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicony Electronics Co and Shin Zu Shing, you can compare the effects of market volatilities on Chicony Electronics and Shin Zu 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 Chicony Electronics with a short position of Shin Zu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Electronics and Shin Zu.
Diversification Opportunities for Chicony Electronics and Shin Zu
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chicony and Shin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Electronics Co and Shin Zu Shing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Zu Shing and Chicony Electronics 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 Chicony Electronics Co are associated (or correlated) with Shin Zu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Zu Shing has no effect on the direction of Chicony Electronics i.e., Chicony Electronics and Shin Zu go up and down completely randomly.
Pair Corralation between Chicony Electronics and Shin Zu
Assuming the 90 days trading horizon Chicony Electronics is expected to generate 1.53 times less return on investment than Shin Zu. But when comparing it to its historical volatility, Chicony Electronics Co is 1.52 times less risky than Shin Zu. It trades about 0.07 of its potential returns per unit of risk. Shin Zu Shing is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,287 in Shin Zu Shing on August 24, 2024 and sell it today you would earn a total of 11,213 from holding Shin Zu Shing or generate 135.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chicony Electronics Co vs. Shin Zu Shing
Performance |
| Timeline |
| Chicony Electronics |
| Shin Zu Shing |
Chicony Electronics and Shin Zu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Electronics and Shin Zu
The main advantage of trading using opposite Chicony Electronics and Shin Zu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Electronics position performs unexpectedly, Shin Zu 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 Zu will offset losses from the drop in Shin Zu's long position.| Chicony Electronics vs. Novatek Microelectronics Corp | Chicony Electronics vs. MediaTek | Chicony Electronics vs. Quanta Computer | Chicony Electronics vs. United Microelectronics |
| Shin Zu vs. Catcher Technology Co | Shin Zu vs. Tripod Technology Corp | Shin Zu vs. Chicony Electronics Co | Shin Zu vs. Kinsus Interconnect Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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