Correlation Between X Legend and An Shin
Can any of the company-specific risk be diversified away by investing in both X Legend and An Shin 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 X Legend and An Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Legend Entertainment Co and An Shin Food Services, you can compare the effects of market volatilities on X Legend and An Shin 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 X Legend with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Legend and An Shin.
Diversification Opportunities for X Legend and An Shin
Very weak diversification
The 3 months correlation between 4994 and 1259 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding X Legend Entertainment Co and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food and X Legend 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 X Legend Entertainment Co are associated (or correlated) with An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of X Legend i.e., X Legend and An Shin go up and down completely randomly.
Pair Corralation between X Legend and An Shin
Assuming the 90 days trading horizon X Legend is expected to generate 1.33 times less return on investment than An Shin. In addition to that, X Legend is 1.11 times more volatile than An Shin Food Services. It trades about 0.12 of its total potential returns per unit of risk. An Shin Food Services is currently generating about 0.18 per unit of volatility. If you would invest 6,280 in An Shin Food Services on November 28, 2024 and sell it today you would earn a total of 170.00 from holding An Shin Food Services or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Legend Entertainment Co vs. An Shin Food Services
Performance |
| Timeline |
| X Legend Entertainment |
| An Shin Food |
X Legend and An Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Legend and An Shin
The main advantage of trading using opposite X Legend and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Legend position performs unexpectedly, An Shin 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 An Shin will offset losses from the drop in An Shin's long position.| X Legend vs. Abnova Taiwan Corp | X Legend vs. Cheng Mei Materials | X Legend vs. BizLink Holding | X Legend vs. Lemtech Holdings Co |
| An Shin vs. International CSRC Investment | An Shin vs. Onyx Healthcare | An Shin vs. Taiwan Speciality Chemicals | An Shin vs. China Airlines |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |