Correlation Between Shih Kuen and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Shih Kuen and SS Healthcare 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 Shih Kuen and SS Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shih Kuen Plastics and SS Healthcare Holding, you can compare the effects of market volatilities on Shih Kuen and SS Healthcare 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 Shih Kuen with a short position of SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shih Kuen and SS Healthcare.
Diversification Opportunities for Shih Kuen and SS Healthcare
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shih and 4198 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shih Kuen Plastics and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding and Shih Kuen 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 Shih Kuen Plastics are associated (or correlated) with SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Shih Kuen i.e., Shih Kuen and SS Healthcare go up and down completely randomly.
Pair Corralation between Shih Kuen and SS Healthcare
Assuming the 90 days trading horizon Shih Kuen Plastics is expected to generate 0.43 times more return on investment than SS Healthcare. However, Shih Kuen Plastics is 2.3 times less risky than SS Healthcare. It trades about -0.19 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about -0.1 per unit of risk. 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 |
Shih Kuen Plastics vs. SS Healthcare Holding
Performance |
| Timeline |
| Shih Kuen Plastics |
| SS Healthcare Holding |
Shih Kuen and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shih Kuen and SS Healthcare
The main advantage of trading using opposite Shih Kuen and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shih Kuen position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| Shih Kuen vs. SS Healthcare Holding | Shih Kuen vs. Power Wind Health | Shih Kuen vs. Pacific Hospital Supply | Shih Kuen vs. Davicom Semiconductor |
| SS Healthcare vs. StShine Optical Co | SS Healthcare vs. TTY Biopharm Co | SS Healthcare vs. Apex Biotechnology Corp | SS Healthcare vs. Ruentex Development Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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