Correlation Between Evergreen Marine and Shin Kong
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Shin Kong 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 Evergreen Marine and Shin Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergreen Marine Corp and Shin Kong Financial, you can compare the effects of market volatilities on Evergreen Marine and Shin Kong 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 Evergreen Marine with a short position of Shin Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Shin Kong.
Diversification Opportunities for Evergreen Marine and Shin Kong
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Evergreen and Shin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Shin Kong Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Kong Financial and Evergreen Marine 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 Evergreen Marine Corp are associated (or correlated) with Shin Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Kong Financial has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Shin Kong go up and down completely randomly.
Pair Corralation between Evergreen Marine and Shin Kong
Assuming the 90 days trading horizon Evergreen Marine is expected to generate 290.25 times less return on investment than Shin Kong. In addition to that, Evergreen Marine is 3.12 times more volatile than Shin Kong Financial. It trades about 0.0 of its total potential returns per unit of risk. Shin Kong Financial is currently generating about 0.17 per unit of volatility. If you would invest 1,145 in Shin Kong Financial on October 25, 2024 and sell it today you would earn a total of 85.00 from holding Shin Kong Financial or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Shin Kong Financial
Performance |
| Timeline |
| Evergreen Marine Corp |
| Shin Kong Financial |
Evergreen Marine and Shin Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Shin Kong
The main advantage of trading using opposite Evergreen Marine and Shin Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Shin Kong 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 Kong will offset losses from the drop in Shin Kong's long position.| Evergreen Marine vs. Yang Ming Marine | Evergreen Marine vs. Wan Hai Lines | Evergreen Marine vs. Eva Airways Corp | Evergreen Marine vs. China Airlines |
| Shin Kong vs. Taiwan Semiconductor Manufacturing | Shin Kong vs. Evergreen Marine Corp | Shin Kong vs. Yang Ming Marine | Shin Kong vs. Wan Hai Lines |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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