Correlation Between Shin Zu and Acbel Polytech
Can any of the company-specific risk be diversified away by investing in both Shin Zu and Acbel Polytech 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 Acbel Polytech 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 Acbel Polytech, you can compare the effects of market volatilities on Shin Zu and Acbel Polytech 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 Acbel Polytech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Zu and Acbel Polytech.
Diversification Opportunities for Shin Zu and Acbel Polytech
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shin and Acbel is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shin Zu Shing and Acbel Polytech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acbel Polytech 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 Acbel Polytech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acbel Polytech has no effect on the direction of Shin Zu i.e., Shin Zu and Acbel Polytech go up and down completely randomly.
Pair Corralation between Shin Zu and Acbel Polytech
Assuming the 90 days trading horizon Shin Zu Shing is expected to generate 1.76 times more return on investment than Acbel Polytech. However, Shin Zu is 1.76 times more volatile than Acbel Polytech. It trades about 0.1 of its potential returns per unit of risk. Acbel Polytech is currently generating about -0.03 per unit of risk. If you would invest 8,340 in Shin Zu Shing on September 4, 2024 and sell it today you would earn a total of 11,160 from holding Shin Zu Shing or generate 133.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Zu Shing vs. Acbel Polytech
Performance |
| Timeline |
| Shin Zu Shing |
| Acbel Polytech |
Shin Zu and Acbel Polytech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Zu and Acbel Polytech
The main advantage of trading using opposite Shin Zu and Acbel Polytech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Zu position performs unexpectedly, Acbel Polytech 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 Acbel Polytech will offset losses from the drop in Acbel Polytech'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 |
| Acbel Polytech vs. Universal Microelectronics Co | Acbel Polytech vs. AVerMedia Technologies | Acbel Polytech vs. Symtek Automation Asia | Acbel Polytech vs. WiseChip Semiconductor |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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