Correlation Between Kunyue Development and Shin Ruenn
Can any of the company-specific risk be diversified away by investing in both Kunyue Development 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 Kunyue Development and Shin Ruenn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kunyue Development Co and Shin Ruenn Development, you can compare the effects of market volatilities on Kunyue Development 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 Kunyue Development with a short position of Shin Ruenn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunyue Development and Shin Ruenn.
Diversification Opportunities for Kunyue Development and Shin Ruenn
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunyue and Shin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kunyue Development 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 Kunyue Development 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 Kunyue Development 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 Kunyue Development i.e., Kunyue Development and Shin Ruenn go up and down completely randomly.
Pair Corralation between Kunyue Development and Shin Ruenn
Assuming the 90 days trading horizon Kunyue Development Co is expected to generate 1.17 times more return on investment than Shin Ruenn. However, Kunyue Development is 1.17 times more volatile than Shin Ruenn Development. It trades about 0.28 of its potential returns per unit of risk. Shin Ruenn Development is currently generating about 0.11 per unit of risk. If you would invest 3,420 in Kunyue Development Co on August 30, 2024 and sell it today you would earn a total of 695.00 from holding Kunyue Development Co or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunyue Development Co vs. Shin Ruenn Development
Performance |
| Timeline |
| Kunyue Development |
| Shin Ruenn Development |
Kunyue Development and Shin Ruenn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunyue Development and Shin Ruenn
The main advantage of trading using opposite Kunyue Development and Shin Ruenn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunyue Development 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.| Kunyue Development vs. U Media Communications | Kunyue Development vs. Tradetool Auto Co | Kunyue Development vs. RDC Semiconductor Co | Kunyue Development vs. Tai Tung Communication |
| Shin Ruenn vs. Thermaltake Technology Co | Shin Ruenn vs. HIM International Music | Shin Ruenn vs. Mercuries Life Insurance | Shin Ruenn vs. Hunya Foods 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |