Correlation Between Min Aik and Shin Kong
Can any of the company-specific risk be diversified away by investing in both Min Aik and Shin Kong 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 Min Aik and Shin Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Min Aik Technology and Shin Kong Financial, you can compare the effects of market volatilities on Min Aik and Shin Kong 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 Min Aik with a short position of Shin Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and Shin Kong.
Diversification Opportunities for Min Aik and Shin Kong
Significant diversification
The 3 months correlation between Min and Shin is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and Shin Kong Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Kong Financial and Min Aik 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 Min Aik Technology are associated (or correlated) with Shin Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Kong Financial has no effect on the direction of Min Aik i.e., Min Aik and Shin Kong go up and down completely randomly.
Pair Corralation between Min Aik and Shin Kong
Assuming the 90 days trading horizon Min Aik Technology is expected to generate 3.07 times more return on investment than Shin Kong. However, Min Aik is 3.07 times more volatile than Shin Kong Financial. It trades about 0.04 of its potential returns per unit of risk. Shin Kong Financial is currently generating about 0.0 per unit of risk. If you would invest 1,616 in Min Aik Technology on September 14, 2024 and sell it today you would earn a total of 754.00 from holding Min Aik Technology or generate 46.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Min Aik Technology vs. Shin Kong Financial
Performance |
| Timeline |
| Min Aik Technology |
| Shin Kong Financial |
Min Aik and Shin Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Min Aik and Shin Kong
The main advantage of trading using opposite Min Aik and Shin Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, Shin Kong 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 Shin Kong will offset losses from the drop in Shin Kong's long position.| Min Aik vs. AU Optronics | Min Aik vs. Innolux Corp | Min Aik vs. Ruentex Development Co | Min Aik vs. WiseChip Semiconductor |
| Shin Kong vs. MediaTek | Shin Kong vs. X Legend Entertainment Co | Shin Kong vs. Min Aik Technology | Shin Kong vs. Posiflex Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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