Correlation Between Shinkong Insurance and Onyx Healthcare
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Onyx 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 Onyx 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 Onyx Healthcare, you can compare the effects of market volatilities on Shinkong Insurance and Onyx 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 Onyx Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Onyx Healthcare.
Diversification Opportunities for Shinkong Insurance and Onyx Healthcare
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinkong and Onyx is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Onyx Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onyx Healthcare 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 Onyx Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onyx Healthcare has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Onyx Healthcare go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Onyx Healthcare
Assuming the 90 days trading horizon Shinkong Insurance is expected to generate 13.55 times less return on investment than Onyx Healthcare. But when comparing it to its historical volatility, Shinkong Insurance Co is 33.95 times less risky than Onyx Healthcare. It trades about 0.12 of its potential returns per unit of risk. Onyx Healthcare is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,115 in Onyx Healthcare on September 2, 2024 and sell it today you would earn a total of 4,585 from holding Onyx Healthcare or generate 41.25% 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. Onyx Healthcare
Performance |
| Timeline |
| Shinkong Insurance |
| Onyx Healthcare |
Shinkong Insurance and Onyx Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Onyx Healthcare
The main advantage of trading using opposite Shinkong Insurance and Onyx Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Onyx 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 Onyx Healthcare will offset losses from the drop in Onyx 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 |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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