Correlation Between Shinkong Insurance and Iron Force
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Iron Force 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 Iron Force 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 Iron Force Industrial, you can compare the effects of market volatilities on Shinkong Insurance and Iron Force 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 Iron Force. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Iron Force.
Diversification Opportunities for Shinkong Insurance and Iron Force
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinkong and Iron is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Iron Force Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Force Industrial 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 Iron Force. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Force Industrial has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Iron Force go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Iron Force
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 0.71 times more return on investment than Iron Force. However, Shinkong Insurance Co is 1.4 times less risky than Iron Force. It trades about 0.09 of its potential returns per unit of risk. Iron Force Industrial is currently generating about -0.22 per unit of risk. If you would invest 9,820 in Shinkong Insurance Co on September 1, 2024 and sell it today you would earn a total of 180.00 from holding Shinkong Insurance Co or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Insurance Co vs. Iron Force Industrial
Performance |
| Timeline |
| Shinkong Insurance |
| Iron Force Industrial |
Shinkong Insurance and Iron Force Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Iron Force
The main advantage of trading using opposite Shinkong Insurance and Iron Force positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Iron Force 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 Iron Force will offset losses from the drop in Iron Force's long position.| Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding |
| Iron Force vs. Hota Industrial Mfg | Iron Force vs. BizLink Holding | Iron Force vs. Cub Elecparts | Iron Force vs. Hu Lane Associate |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |