Correlation Between Shin Shin and Kingcan Holdings
Can any of the company-specific risk be diversified away by investing in both Shin Shin and Kingcan Holdings 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 Shin and Kingcan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Shin Co and Kingcan Holdings, you can compare the effects of market volatilities on Shin Shin and Kingcan Holdings 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 Shin with a short position of Kingcan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Shin and Kingcan Holdings.
Diversification Opportunities for Shin Shin and Kingcan Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shin and Kingcan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shin Shin Co and Kingcan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingcan Holdings and Shin Shin 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 Shin Co are associated (or correlated) with Kingcan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingcan Holdings has no effect on the direction of Shin Shin i.e., Shin Shin and Kingcan Holdings go up and down completely randomly.
Pair Corralation between Shin Shin and Kingcan Holdings
Assuming the 90 days trading horizon Shin Shin Co is expected to under-perform the Kingcan Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Shin Shin Co is 1.04 times less risky than Kingcan Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The Kingcan Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,355 in Kingcan Holdings on September 3, 2024 and sell it today you would lose (30.00) from holding Kingcan Holdings or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Shin Co vs. Kingcan Holdings
Performance |
| Timeline |
| Shin Shin |
| Kingcan Holdings |
Shin Shin and Kingcan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Shin and Kingcan Holdings
The main advantage of trading using opposite Shin Shin and Kingcan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Shin position performs unexpectedly, Kingcan Holdings 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 Kingcan Holdings will offset losses from the drop in Kingcan Holdings' long position.| Shin Shin vs. Standard Foods Corp | Shin Shin vs. TTET Union Corp | Shin Shin vs. Uni President Enterprises Corp | Shin Shin vs. Charoen Pokphand Enterprise |
| Kingcan Holdings vs. Jinli Group Holdings | Kingcan Holdings vs. Shinih Enterprise Co | Kingcan Holdings vs. Super Dragon Technology | Kingcan Holdings vs. Shui Mu International Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |