Correlation Between Shinkong Insurance and Genovate Biotechnology
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Genovate Biotechnology 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 Genovate Biotechnology 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 Genovate Biotechnology Co, you can compare the effects of market volatilities on Shinkong Insurance and Genovate Biotechnology 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 Genovate Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Genovate Biotechnology.
Diversification Opportunities for Shinkong Insurance and Genovate Biotechnology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinkong and Genovate is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Genovate Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovate Biotechnology 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 Genovate Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovate Biotechnology has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Genovate Biotechnology go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Genovate Biotechnology
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to under-perform the Genovate Biotechnology. In addition to that, Shinkong Insurance is 1.23 times more volatile than Genovate Biotechnology Co. It trades about -0.11 of its total potential returns per unit of risk. Genovate Biotechnology Co is currently generating about 0.27 per unit of volatility. If you would invest 2,320 in Genovate Biotechnology Co on November 28, 2024 and sell it today you would earn a total of 90.00 from holding Genovate Biotechnology Co or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Insurance Co vs. Genovate Biotechnology Co
Performance |
| Timeline |
| Shinkong Insurance |
| Genovate Biotechnology |
Shinkong Insurance and Genovate Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Genovate Biotechnology
The main advantage of trading using opposite Shinkong Insurance and Genovate Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Genovate Biotechnology 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 Genovate Biotechnology will offset losses from the drop in Genovate Biotechnology'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 |
| Genovate Biotechnology vs. Johnson Health Tech | Genovate Biotechnology vs. Hunya Foods Co | Genovate Biotechnology vs. Sporton International | Genovate Biotechnology vs. Mechema Chemicals Int |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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