Correlation Between Sinopac Financial and Concord Securities
Can any of the company-specific risk be diversified away by investing in both Sinopac Financial and Concord Securities 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 Sinopac Financial and Concord Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinopac Financial Holdings and Concord Securities Co, you can compare the effects of market volatilities on Sinopac Financial and Concord Securities 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 Sinopac Financial with a short position of Concord Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopac Financial and Concord Securities.
Diversification Opportunities for Sinopac Financial and Concord Securities
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinopac and Concord is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sinopac Financial Holdings and Concord Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Securities and Sinopac Financial 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 Sinopac Financial Holdings are associated (or correlated) with Concord Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Securities has no effect on the direction of Sinopac Financial i.e., Sinopac Financial and Concord Securities go up and down completely randomly.
Pair Corralation between Sinopac Financial and Concord Securities
Assuming the 90 days trading horizon Sinopac Financial Holdings is expected to under-perform the Concord Securities. In addition to that, Sinopac Financial is 1.9 times more volatile than Concord Securities Co. It trades about -0.09 of its total potential returns per unit of risk. Concord Securities Co is currently generating about 0.0 per unit of volatility. If you would invest 1,390 in Concord Securities Co on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Concord Securities Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinopac Financial Holdings vs. Concord Securities Co
Performance |
| Timeline |
| Sinopac Financial |
| Concord Securities |
Sinopac Financial and Concord Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopac Financial and Concord Securities
The main advantage of trading using opposite Sinopac Financial and Concord Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopac Financial position performs unexpectedly, Concord Securities 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 Concord Securities will offset losses from the drop in Concord Securities' long position.| Sinopac Financial vs. First Financial Holding | Sinopac Financial vs. Taishin Financial Holding | Sinopac Financial vs. CTBC Financial Holding | Sinopac Financial vs. Mega Financial Holding |
| Concord Securities vs. Hung Sheng Construction | Concord Securities vs. Mercuries Life Insurance | Concord Securities vs. Sinher Technology | Concord Securities vs. YungShin Global Holding |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |