Correlation Between SS Healthcare and Shih Kuen
Can any of the company-specific risk be diversified away by investing in both SS Healthcare and Shih Kuen 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 SS Healthcare and Shih Kuen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS Healthcare Holding and Shih Kuen Plastics, you can compare the effects of market volatilities on SS Healthcare and Shih Kuen 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 SS Healthcare with a short position of Shih Kuen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS Healthcare and Shih Kuen.
Diversification Opportunities for SS Healthcare and Shih Kuen
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 4198 and Shih is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SS Healthcare Holding and Shih Kuen Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shih Kuen Plastics and SS Healthcare 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 SS Healthcare Holding are associated (or correlated) with Shih Kuen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shih Kuen Plastics has no effect on the direction of SS Healthcare i.e., SS Healthcare and Shih Kuen go up and down completely randomly.
Pair Corralation between SS Healthcare and Shih Kuen
Assuming the 90 days trading horizon SS Healthcare Holding is expected to under-perform the Shih Kuen. In addition to that, SS Healthcare is 2.3 times more volatile than Shih Kuen Plastics. It trades about -0.1 of its total potential returns per unit of risk. Shih Kuen Plastics is currently generating about -0.19 per unit of volatility. If you would invest 4,590 in Shih Kuen Plastics on August 26, 2024 and sell it today you would lose (240.00) from holding Shih Kuen Plastics or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS Healthcare Holding vs. Shih Kuen Plastics
Performance |
| Timeline |
| SS Healthcare Holding |
| Shih Kuen Plastics |
SS Healthcare and Shih Kuen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS Healthcare and Shih Kuen
The main advantage of trading using opposite SS Healthcare and Shih Kuen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS Healthcare position performs unexpectedly, Shih Kuen 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 Shih Kuen will offset losses from the drop in Shih Kuen's long position.| SS Healthcare vs. StShine Optical Co | SS Healthcare vs. TTY Biopharm Co | SS Healthcare vs. Apex Biotechnology Corp | SS Healthcare vs. Ruentex Development Co |
| Shih Kuen vs. SS Healthcare Holding | Shih Kuen vs. Power Wind Health | Shih Kuen vs. Pacific Hospital Supply | Shih Kuen vs. Davicom 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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