Correlation Between Shinkong Insurance and Senao International
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Senao International 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 Senao International 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 Senao International Co, you can compare the effects of market volatilities on Shinkong Insurance and Senao International 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 Senao International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Senao International.
Diversification Opportunities for Shinkong Insurance and Senao International
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinkong and Senao is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Senao International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senao International 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 Senao International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senao International has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Senao International go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Senao International
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 1.74 times more return on investment than Senao International. However, Shinkong Insurance is 1.74 times more volatile than Senao International Co. It trades about 0.12 of its potential returns per unit of risk. Senao International Co is currently generating about 0.03 per unit of risk. If you would invest 4,785 in Shinkong Insurance Co on September 3, 2024 and sell it today you would earn a total of 5,215 from holding Shinkong Insurance Co or generate 108.99% 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. Senao International Co
Performance |
| Timeline |
| Shinkong Insurance |
| Senao International |
Shinkong Insurance and Senao International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Senao International
The main advantage of trading using opposite Shinkong Insurance and Senao International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Senao International 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 Senao International will offset losses from the drop in Senao International's long position.| Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding | Shinkong Insurance vs. Chailease Holding Co |
| Senao International vs. Elite Material Co | Senao International vs. Highlight Tech | Senao International vs. Victory New Materials | Senao International vs. Grand Plastic 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |