Correlation Between EMemory Technology and Shinkong Insurance
Can any of the company-specific risk be diversified away by investing in both EMemory Technology and Shinkong Insurance 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 EMemory Technology and Shinkong Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMemory Technology and Shinkong Insurance Co, you can compare the effects of market volatilities on EMemory Technology and Shinkong Insurance 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 EMemory Technology with a short position of Shinkong Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMemory Technology and Shinkong Insurance.
Diversification Opportunities for EMemory Technology and Shinkong Insurance
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EMemory and Shinkong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding eMemory Technology and Shinkong Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong Insurance and EMemory Technology 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 eMemory Technology are associated (or correlated) with Shinkong Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinkong Insurance has no effect on the direction of EMemory Technology i.e., EMemory Technology and Shinkong Insurance go up and down completely randomly.
Pair Corralation between EMemory Technology and Shinkong Insurance
Assuming the 90 days trading horizon eMemory Technology is expected to generate 2.06 times more return on investment than Shinkong Insurance. However, EMemory Technology is 2.06 times more volatile than Shinkong Insurance Co. It trades about 0.08 of its potential returns per unit of risk. Shinkong Insurance Co is currently generating about 0.03 per unit of risk. If you would invest 218,496 in eMemory Technology on August 29, 2024 and sell it today you would earn a total of 65,004 from holding eMemory Technology or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
eMemory Technology vs. Shinkong Insurance Co
Performance |
| Timeline |
| eMemory Technology |
| Shinkong Insurance |
EMemory Technology and Shinkong Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMemory Technology and Shinkong Insurance
The main advantage of trading using opposite EMemory Technology and Shinkong Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMemory Technology position performs unexpectedly, Shinkong Insurance 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 Shinkong Insurance will offset losses from the drop in Shinkong Insurance's long position.| EMemory Technology vs. Nan Ya Printed | EMemory Technology vs. Global Unichip Corp | EMemory Technology vs. Aspeed Technology | EMemory Technology vs. Alchip Technologies |
| Shinkong Insurance vs. Taiwan Secom Co | Shinkong Insurance vs. TTET Union Corp | Shinkong Insurance vs. China Steel Chemical | Shinkong Insurance vs. Taiwan Shin Kong |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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