Correlation Between Data International and Shin Kong
Can any of the company-specific risk be diversified away by investing in both Data International and Shin Kong 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 Data International and Shin Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data International Co and Shin Kong Financial, you can compare the effects of market volatilities on Data International and Shin Kong 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 Data International with a short position of Shin Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data International and Shin Kong.
Diversification Opportunities for Data International and Shin Kong
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Data and Shin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Data International Co and Shin Kong Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Kong Financial and Data International 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 Data International Co are associated (or correlated) with Shin Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Kong Financial has no effect on the direction of Data International i.e., Data International and Shin Kong go up and down completely randomly.
Pair Corralation between Data International and Shin Kong
Assuming the 90 days trading horizon Data International Co is expected to generate 4.92 times more return on investment than Shin Kong. However, Data International is 4.92 times more volatile than Shin Kong Financial. It trades about 0.11 of its potential returns per unit of risk. Shin Kong Financial is currently generating about 0.0 per unit of risk. If you would invest 2,814 in Data International Co on September 4, 2024 and sell it today you would earn a total of 13,786 from holding Data International Co or generate 489.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data International Co vs. Shin Kong Financial
Performance |
| Timeline |
| Data International |
| Shin Kong Financial |
Data International and Shin Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data International and Shin Kong
The main advantage of trading using opposite Data International and Shin Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data International position performs unexpectedly, Shin Kong 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 Kong will offset losses from the drop in Shin Kong's long position.| Data International vs. Hon Hai Precision | Data International vs. Delta Electronics | Data International vs. LARGAN Precision Co | Data International vs. AU Optronics |
| Shin Kong vs. Data International Co | Shin Kong vs. Taiwan Mobile Co | Shin Kong vs. Datavan International | Shin Kong vs. Tainet Communication System |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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