Correlation Between Thermaltake Technology and Shin Ruenn
Can any of the company-specific risk be diversified away by investing in both Thermaltake Technology and Shin Ruenn 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 Thermaltake Technology and Shin Ruenn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermaltake Technology Co and Shin Ruenn Development, you can compare the effects of market volatilities on Thermaltake Technology and Shin Ruenn 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 Thermaltake Technology with a short position of Shin Ruenn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermaltake Technology and Shin Ruenn.
Diversification Opportunities for Thermaltake Technology and Shin Ruenn
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thermaltake and Shin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Thermaltake Technology Co and Shin Ruenn Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Ruenn Development and Thermaltake 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 Thermaltake Technology Co are associated (or correlated) with Shin Ruenn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Ruenn Development has no effect on the direction of Thermaltake Technology i.e., Thermaltake Technology and Shin Ruenn go up and down completely randomly.
Pair Corralation between Thermaltake Technology and Shin Ruenn
Assuming the 90 days trading horizon Thermaltake Technology Co is expected to under-perform the Shin Ruenn. In addition to that, Thermaltake Technology is 1.19 times more volatile than Shin Ruenn Development. It trades about -0.01 of its total potential returns per unit of risk. Shin Ruenn Development is currently generating about 0.06 per unit of volatility. If you would invest 4,275 in Shin Ruenn Development on September 2, 2024 and sell it today you would earn a total of 2,165 from holding Shin Ruenn Development or generate 50.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermaltake Technology Co vs. Shin Ruenn Development
Performance |
| Timeline |
| Thermaltake Technology |
| Shin Ruenn Development |
Thermaltake Technology and Shin Ruenn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermaltake Technology and Shin Ruenn
The main advantage of trading using opposite Thermaltake Technology and Shin Ruenn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermaltake Technology position performs unexpectedly, Shin Ruenn 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 Ruenn will offset losses from the drop in Shin Ruenn's long position.| Thermaltake Technology vs. Quanta Computer | Thermaltake Technology vs. Wiwynn Corp | Thermaltake Technology vs. Getac Technology Corp | Thermaltake Technology vs. InnoDisk |
| Shin Ruenn vs. Hi Lai Foods Co | Shin Ruenn vs. Founding Construction Development | Shin Ruenn vs. Ruentex Engineering Construction | Shin Ruenn vs. Chung Hsin Electric Machinery |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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