Correlation Between Shinkong Insurance and SYN Tech
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and SYN Tech 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 Shinkong Insurance and SYN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinkong Insurance Co and SYN Tech Chem Pharm, you can compare the effects of market volatilities on Shinkong Insurance and SYN Tech 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 Shinkong Insurance with a short position of SYN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and SYN Tech.
Diversification Opportunities for Shinkong Insurance and SYN Tech
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinkong and SYN is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and SYN Tech Chem Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN Tech Chem and Shinkong Insurance 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 Shinkong Insurance Co are associated (or correlated) with SYN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN Tech Chem has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and SYN Tech go up and down completely randomly.
Pair Corralation between Shinkong Insurance and SYN Tech
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 1.51 times more return on investment than SYN Tech. However, Shinkong Insurance is 1.51 times more volatile than SYN Tech Chem Pharm. It trades about 0.11 of its potential returns per unit of risk. SYN Tech Chem Pharm is currently generating about 0.09 per unit of risk. If you would invest 7,020 in Shinkong Insurance Co on September 1, 2024 and sell it today you would earn a total of 2,980 from holding Shinkong Insurance Co or generate 42.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Shinkong Insurance Co vs. SYN Tech Chem Pharm
Performance |
| Timeline |
| Shinkong Insurance |
| SYN Tech Chem |
Shinkong Insurance and SYN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and SYN Tech
The main advantage of trading using opposite Shinkong Insurance and SYN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, SYN Tech 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 SYN Tech will offset losses from the drop in SYN Tech's long position.| Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding |
| SYN Tech vs. Allied Industrial | SYN Tech vs. Powertech Industrial Co | SYN Tech vs. Compal Broadband Networks | SYN Tech vs. Professional Computer 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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