Correlation Between Shinkong Insurance and Syntek Semiconductor
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Syntek Semiconductor 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 Syntek Semiconductor 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 Syntek Semiconductor Co, you can compare the effects of market volatilities on Shinkong Insurance and Syntek Semiconductor 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 Syntek Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Syntek Semiconductor.
Diversification Opportunities for Shinkong Insurance and Syntek Semiconductor
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinkong and Syntek is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Syntek Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntek Semiconductor 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 Syntek Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntek Semiconductor has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Syntek Semiconductor go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Syntek Semiconductor
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 0.83 times more return on investment than Syntek Semiconductor. However, Shinkong Insurance Co is 1.21 times less risky than Syntek Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Syntek Semiconductor Co is currently generating about -0.35 per unit of risk. If you would invest 10,000 in Shinkong Insurance Co on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Shinkong Insurance Co or generate 0.0% 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. Syntek Semiconductor Co
Performance |
| Timeline |
| Shinkong Insurance |
| Syntek Semiconductor |
Shinkong Insurance and Syntek Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Syntek Semiconductor
The main advantage of trading using opposite Shinkong Insurance and Syntek Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Syntek Semiconductor 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 Syntek Semiconductor will offset losses from the drop in Syntek Semiconductor'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 |
| Syntek Semiconductor vs. Chia Yi Steel | Syntek Semiconductor vs. Shinkong Insurance Co | Syntek Semiconductor vs. TMP Steel | Syntek Semiconductor vs. Yeou Yih 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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