Correlation Between Shinkong Insurance and CHC Healthcare
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and CHC Healthcare 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 CHC Healthcare 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 CHC Healthcare Group, you can compare the effects of market volatilities on Shinkong Insurance and CHC Healthcare 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 CHC Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and CHC Healthcare.
Diversification Opportunities for Shinkong Insurance and CHC Healthcare
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinkong and CHC is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and CHC Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHC Healthcare Group 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 CHC Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHC Healthcare Group has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and CHC Healthcare go up and down completely randomly.
Pair Corralation between Shinkong Insurance and CHC Healthcare
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 0.82 times more return on investment than CHC Healthcare. However, Shinkong Insurance Co is 1.21 times less risky than CHC Healthcare. It trades about 0.12 of its potential returns per unit of risk. CHC Healthcare Group is currently generating about -0.05 per unit of risk. If you would invest 5,160 in Shinkong Insurance Co on September 2, 2024 and sell it today you would earn a total of 4,840 from holding Shinkong Insurance Co or generate 93.8% 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. CHC Healthcare Group
Performance |
| Timeline |
| Shinkong Insurance |
| CHC Healthcare Group |
Shinkong Insurance and CHC Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and CHC Healthcare
The main advantage of trading using opposite Shinkong Insurance and CHC Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, CHC Healthcare 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 CHC Healthcare will offset losses from the drop in CHC Healthcare'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 |
| CHC Healthcare vs. Phytohealth Corp | CHC Healthcare vs. GenMont Biotech | CHC Healthcare vs. Hung Sheng Construction | CHC Healthcare vs. De Licacy Industrial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |