Correlation Between Shinkong Insurance and Sporton International
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Sporton International 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 Sporton International 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 Sporton International, you can compare the effects of market volatilities on Shinkong Insurance and Sporton International 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 Sporton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Sporton International.
Diversification Opportunities for Shinkong Insurance and Sporton International
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinkong and Sporton is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Sporton International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporton International 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 Sporton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporton International has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Sporton International go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Sporton International
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 1.01 times more return on investment than Sporton International. However, Shinkong Insurance is 1.01 times more volatile than Sporton International. It trades about 0.08 of its potential returns per unit of risk. Sporton International is currently generating about -0.15 per unit of risk. If you would invest 9,940 in Shinkong Insurance Co on September 13, 2024 and sell it today you would earn a total of 360.00 from holding Shinkong Insurance Co or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Insurance Co vs. Sporton International
Performance |
| Timeline |
| Shinkong Insurance |
| Sporton International |
Shinkong Insurance and Sporton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Sporton International
The main advantage of trading using opposite Shinkong Insurance and Sporton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Sporton International 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 Sporton International will offset losses from the drop in Sporton International'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 |
| Sporton International vs. STL Technology Co | Sporton International vs. Asmedia Technology | Sporton International vs. Posiflex Technology | Sporton International vs. China Airlines |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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