Correlation Between Shin Zu and ThinTech Materials
Can any of the company-specific risk be diversified away by investing in both Shin Zu and ThinTech Materials 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 ThinTech Materials 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 ThinTech Materials Technology, you can compare the effects of market volatilities on Shin Zu and ThinTech Materials 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 ThinTech Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Zu and ThinTech Materials.
Diversification Opportunities for Shin Zu and ThinTech Materials
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shin and ThinTech is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shin Zu Shing and ThinTech Materials Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThinTech Materials 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 ThinTech Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThinTech Materials has no effect on the direction of Shin Zu i.e., Shin Zu and ThinTech Materials go up and down completely randomly.
Pair Corralation between Shin Zu and ThinTech Materials
Assuming the 90 days trading horizon Shin Zu is expected to generate 1.63 times less return on investment than ThinTech Materials. In addition to that, Shin Zu is 1.06 times more volatile than ThinTech Materials Technology. It trades about 0.08 of its total potential returns per unit of risk. ThinTech Materials Technology is currently generating about 0.14 per unit of volatility. If you would invest 6,140 in ThinTech Materials Technology on December 11, 2024 and sell it today you would earn a total of 510.00 from holding ThinTech Materials Technology or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Zu Shing vs. ThinTech Materials Technology
Performance |
| Timeline |
| Shin Zu Shing |
| ThinTech Materials |
Shin Zu and ThinTech Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Zu and ThinTech Materials
The main advantage of trading using opposite Shin Zu and ThinTech Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Zu position performs unexpectedly, ThinTech Materials 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 ThinTech Materials will offset losses from the drop in ThinTech Materials' 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 |
| ThinTech Materials vs. CKM Building Material | ThinTech Materials vs. China General Plastics | ThinTech Materials vs. Acelon Chemicals Fiber | ThinTech Materials vs. Formosa Plastics Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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