Correlation Between Shin Kong and HIM International
Can any of the company-specific risk be diversified away by investing in both Shin Kong and HIM 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 Shin Kong and HIM International 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 HIM International Music, you can compare the effects of market volatilities on Shin Kong and HIM 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 Shin Kong with a short position of HIM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Kong and HIM International.
Diversification Opportunities for Shin Kong and HIM International
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shin and HIM is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shin Kong Financial and HIM International Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIM International Music 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 HIM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIM International Music has no effect on the direction of Shin Kong i.e., Shin Kong and HIM International go up and down completely randomly.
Pair Corralation between Shin Kong and HIM International
Assuming the 90 days trading horizon Shin Kong Financial is expected to generate 1.07 times more return on investment than HIM International. However, Shin Kong is 1.07 times more volatile than HIM International Music. It trades about 0.06 of its potential returns per unit of risk. HIM International Music is currently generating about 0.04 per unit of risk. If you would invest 918.00 in Shin Kong Financial on September 12, 2024 and sell it today you would earn a total of 277.00 from holding Shin Kong Financial or generate 30.17% 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. HIM International Music
Performance |
| Timeline |
| Shin Kong Financial |
| HIM International Music |
Shin Kong and HIM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Kong and HIM International
The main advantage of trading using opposite Shin Kong and HIM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Kong position performs unexpectedly, HIM 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 HIM International will offset losses from the drop in HIM International's long position.| Shin Kong vs. Central Reinsurance Corp | Shin Kong vs. Huaku Development Co | Shin Kong vs. Fubon Financial Holding | Shin Kong vs. Chailease Holding Co |
| HIM International vs. Ruentex Development Co | HIM International vs. WiseChip Semiconductor | HIM International vs. Novatek Microelectronics Corp | HIM International vs. Leader Electronics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |