Correlation Between Shinkong Insurance and First Insurance
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and First Insurance 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 First Insurance 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 First Insurance Co, you can compare the effects of market volatilities on Shinkong Insurance and First Insurance 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 First Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and First Insurance.
Diversification Opportunities for Shinkong Insurance and First Insurance
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinkong and First is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and First Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Insurance 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 First Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Insurance has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and First Insurance go up and down completely randomly.
Pair Corralation between Shinkong Insurance and First Insurance
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 1.11 times more return on investment than First Insurance. However, Shinkong Insurance is 1.11 times more volatile than First Insurance Co. It trades about 0.1 of its potential returns per unit of risk. First Insurance Co is currently generating about 0.08 per unit of risk. If you would invest 5,120 in Shinkong Insurance Co on November 28, 2024 and sell it today you would earn a total of 4,880 from holding Shinkong Insurance Co or generate 95.31% 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. First Insurance Co
Performance |
| Timeline |
| Shinkong Insurance |
| First Insurance |
Shinkong Insurance and First Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and First Insurance
The main advantage of trading using opposite Shinkong Insurance and First Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, First Insurance 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 First Insurance will offset losses from the drop in First Insurance'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 |
| First Insurance vs. EnTie Commercial Bank | First Insurance vs. Union Bank of | First Insurance vs. Bank of Kaohsiung | First Insurance vs. Taiwan Business Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |