Correlation Between Shinkong Insurance and AVer Information
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and AVer Information 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 AVer Information 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 AVer Information, you can compare the effects of market volatilities on Shinkong Insurance and AVer Information 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 AVer Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and AVer Information.
Diversification Opportunities for Shinkong Insurance and AVer Information
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinkong and AVer is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and AVer Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVer Information 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 AVer Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVer Information has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and AVer Information go up and down completely randomly.
Pair Corralation between Shinkong Insurance and AVer Information
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 0.61 times more return on investment than AVer Information. However, Shinkong Insurance Co is 1.65 times less risky than AVer Information. It trades about -0.09 of its potential returns per unit of risk. AVer Information is currently generating about -0.25 per unit of risk. If you would invest 10,550 in Shinkong Insurance Co on October 30, 2024 and sell it today you would lose (150.00) from holding Shinkong Insurance Co or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Insurance Co vs. AVer Information
Performance |
| Timeline |
| Shinkong Insurance |
| AVer Information |
Shinkong Insurance and AVer Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and AVer Information
The main advantage of trading using opposite Shinkong Insurance and AVer Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, AVer Information 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 AVer Information will offset losses from the drop in AVer Information'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 |
| AVer Information vs. Evergreen Steel Corp | AVer Information vs. Wei Chih Steel | AVer Information vs. Sheng Yu Steel | AVer Information vs. Tung Ho Steel |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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