Correlation Between Shinkong Insurance and Actron Technology
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Actron Technology 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 Actron Technology 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 Actron Technology, you can compare the effects of market volatilities on Shinkong Insurance and Actron Technology 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 Actron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Actron Technology.
Diversification Opportunities for Shinkong Insurance and Actron Technology
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinkong and Actron is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Actron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actron Technology 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 Actron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actron Technology has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Actron Technology go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Actron Technology
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 0.69 times more return on investment than Actron Technology. However, Shinkong Insurance Co is 1.45 times less risky than Actron Technology. It trades about 0.11 of its potential returns per unit of risk. Actron Technology is currently generating about 0.01 per unit of risk. If you would invest 4,795 in Shinkong Insurance Co on September 5, 2024 and sell it today you would earn a total of 5,205 from holding Shinkong Insurance Co or generate 108.55% 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. Actron Technology
Performance |
| Timeline |
| Shinkong Insurance |
| Actron Technology |
Shinkong Insurance and Actron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Actron Technology
The main advantage of trading using opposite Shinkong Insurance and Actron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Actron Technology 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 Actron Technology will offset losses from the drop in Actron Technology'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 |
| Actron Technology vs. Arima Communications Corp | Actron Technology vs. U Media Communications | Actron Technology vs. Chien Kuo Construction | Actron Technology 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |