Correlation Between Shin Zu and Camellia Metal
Can any of the company-specific risk be diversified away by investing in both Shin Zu and Camellia Metal 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 Zu and Camellia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Zu Shing and Camellia Metal Co, you can compare the effects of market volatilities on Shin Zu and Camellia Metal 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 Zu with a short position of Camellia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Zu and Camellia Metal.
Diversification Opportunities for Shin Zu and Camellia Metal
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shin and Camellia is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shin Zu Shing and Camellia Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Metal and Shin Zu 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 Zu Shing are associated (or correlated) with Camellia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Metal has no effect on the direction of Shin Zu i.e., Shin Zu and Camellia Metal go up and down completely randomly.
Pair Corralation between Shin Zu and Camellia Metal
Assuming the 90 days trading horizon Shin Zu Shing is expected to generate 1.27 times more return on investment than Camellia Metal. However, Shin Zu is 1.27 times more volatile than Camellia Metal Co. It trades about 0.07 of its potential returns per unit of risk. Camellia Metal Co is currently generating about -0.16 per unit of risk. If you would invest 17,650 in Shin Zu Shing on August 30, 2024 and sell it today you would earn a total of 700.00 from holding Shin Zu Shing or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Zu Shing vs. Camellia Metal Co
Performance |
| Timeline |
| Shin Zu Shing |
| Camellia Metal |
Shin Zu and Camellia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Zu and Camellia Metal
The main advantage of trading using opposite Shin Zu and Camellia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Zu position performs unexpectedly, Camellia Metal 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 Camellia Metal will offset losses from the drop in Camellia Metal's long position.| Shin Zu vs. Catcher Technology Co | Shin Zu vs. Tripod Technology Corp | Shin Zu vs. Chicony Electronics Co | Shin Zu vs. Kinsus Interconnect Technology |
| Camellia Metal vs. Catcher Technology Co | Camellia Metal vs. Solar Applied Materials | Camellia Metal vs. Shin Zu Shing | Camellia Metal vs. China Metal Products |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |