Correlation Between Tze Shin and China Container
Can any of the company-specific risk be diversified away by investing in both Tze Shin and China Container 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 Tze Shin and China Container into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tze Shin International and China Container Terminal, you can compare the effects of market volatilities on Tze Shin and China Container 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 Tze Shin with a short position of China Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tze Shin and China Container.
Diversification Opportunities for Tze Shin and China Container
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tze and China is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Tze Shin International and China Container Terminal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Container Terminal and Tze Shin 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 Tze Shin International are associated (or correlated) with China Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Container Terminal has no effect on the direction of Tze Shin i.e., Tze Shin and China Container go up and down completely randomly.
Pair Corralation between Tze Shin and China Container
Assuming the 90 days trading horizon Tze Shin International is expected to generate 0.91 times more return on investment than China Container. However, Tze Shin International is 1.09 times less risky than China Container. It trades about 0.06 of its potential returns per unit of risk. China Container Terminal is currently generating about 0.04 per unit of risk. If you would invest 1,385 in Tze Shin International on August 30, 2024 and sell it today you would earn a total of 855.00 from holding Tze Shin International or generate 61.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tze Shin International vs. China Container Terminal
Performance |
| Timeline |
| Tze Shin International |
| China Container Terminal |
Tze Shin and China Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tze Shin and China Container
The main advantage of trading using opposite Tze Shin and China Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tze Shin position performs unexpectedly, China Container 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 China Container will offset losses from the drop in China Container's long position.| Tze Shin vs. China Container Terminal | Tze Shin vs. Evergreen International Storage | Tze Shin vs. Sincere Navigation Corp | Tze Shin vs. First Steamship Co |
| China Container vs. Yulon Motor Co | China Container vs. Far Eastern Department | China Container vs. China Steel Corp | China Container vs. Chang Hwa Commercial |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |