Correlation Between Shin Kong and Macroblock
Can any of the company-specific risk be diversified away by investing in both Shin Kong and Macroblock 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 Shin Kong and Macroblock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Kong Financial and Macroblock, you can compare the effects of market volatilities on Shin Kong and Macroblock 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 Shin Kong with a short position of Macroblock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Kong and Macroblock.
Diversification Opportunities for Shin Kong and Macroblock
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shin and Macroblock is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shin Kong Financial and Macroblock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macroblock and Shin Kong 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 Shin Kong Financial are associated (or correlated) with Macroblock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macroblock has no effect on the direction of Shin Kong i.e., Shin Kong and Macroblock go up and down completely randomly.
Pair Corralation between Shin Kong and Macroblock
Assuming the 90 days trading horizon Shin Kong is expected to generate 3.61 times less return on investment than Macroblock. But when comparing it to its historical volatility, Shin Kong Financial is 5.91 times less risky than Macroblock. It trades about 0.29 of its potential returns per unit of risk. Macroblock is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 6,840 in Macroblock on October 24, 2024 and sell it today you would earn a total of 800.00 from holding Macroblock or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Kong Financial vs. Macroblock
Performance |
| Timeline |
| Shin Kong Financial |
| Macroblock |
Shin Kong and Macroblock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Kong and Macroblock
The main advantage of trading using opposite Shin Kong and Macroblock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Kong position performs unexpectedly, Macroblock 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 Macroblock will offset losses from the drop in Macroblock's long position.| Shin Kong vs. Cathay Financial Holding | Shin Kong vs. Taishin Financial Holding | Shin Kong vs. Fubon Financial Holding | Shin Kong vs. CTBC Financial Holding |
| Macroblock vs. RiTdisplay Corp | Macroblock vs. Shin Kong Financial | Macroblock vs. Taichung Commercial Bank | Macroblock vs. Yuanta Financial Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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