Correlation Between Chaintech Technology and Shinih Enterprise
Can any of the company-specific risk be diversified away by investing in both Chaintech Technology and Shinih Enterprise 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 Chaintech Technology and Shinih Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chaintech Technology Corp and Shinih Enterprise Co, you can compare the effects of market volatilities on Chaintech Technology and Shinih Enterprise 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 Chaintech Technology with a short position of Shinih Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chaintech Technology and Shinih Enterprise.
Diversification Opportunities for Chaintech Technology and Shinih Enterprise
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chaintech and Shinih is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Chaintech Technology Corp and Shinih Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinih Enterprise and Chaintech Technology 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 Chaintech Technology Corp are associated (or correlated) with Shinih Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinih Enterprise has no effect on the direction of Chaintech Technology i.e., Chaintech Technology and Shinih Enterprise go up and down completely randomly.
Pair Corralation between Chaintech Technology and Shinih Enterprise
Assuming the 90 days trading horizon Chaintech Technology Corp is expected to under-perform the Shinih Enterprise. In addition to that, Chaintech Technology is 2.1 times more volatile than Shinih Enterprise Co. It trades about -0.02 of its total potential returns per unit of risk. Shinih Enterprise Co is currently generating about 0.01 per unit of volatility. If you would invest 2,035 in Shinih Enterprise Co on September 2, 2024 and sell it today you would earn a total of 15.00 from holding Shinih Enterprise Co or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chaintech Technology Corp vs. Shinih Enterprise Co
Performance |
| Timeline |
| Chaintech Technology Corp |
| Shinih Enterprise |
Chaintech Technology and Shinih Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chaintech Technology and Shinih Enterprise
The main advantage of trading using opposite Chaintech Technology and Shinih Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chaintech Technology position performs unexpectedly, Shinih Enterprise 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 Shinih Enterprise will offset losses from the drop in Shinih Enterprise's long position.| Chaintech Technology vs. Biostar Microtech International | Chaintech Technology vs. Elitegroup Computer Systems | Chaintech Technology vs. Shuttle | Chaintech Technology vs. Gigabyte Technology Co |
| Shinih Enterprise vs. Chaintech Technology Corp | Shinih Enterprise vs. Avision | Shinih Enterprise vs. Clevo Co | Shinih Enterprise vs. Elitegroup Computer Systems |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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