Correlation Between Chailease Holding and Shinkong Insurance
Can any of the company-specific risk be diversified away by investing in both Chailease Holding and Shinkong Insurance 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 Chailease Holding and Shinkong Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chailease Holding Co and Shinkong Insurance Co, you can compare the effects of market volatilities on Chailease Holding and Shinkong Insurance 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 Chailease Holding with a short position of Shinkong Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chailease Holding and Shinkong Insurance.
Diversification Opportunities for Chailease Holding and Shinkong Insurance
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chailease and Shinkong is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chailease Holding Co and Shinkong Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong Insurance and Chailease Holding 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 Chailease Holding Co are associated (or correlated) with Shinkong Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinkong Insurance has no effect on the direction of Chailease Holding i.e., Chailease Holding and Shinkong Insurance go up and down completely randomly.
Pair Corralation between Chailease Holding and Shinkong Insurance
Assuming the 90 days trading horizon Chailease Holding Co is expected to under-perform the Shinkong Insurance. In addition to that, Chailease Holding is 1.28 times more volatile than Shinkong Insurance Co. It trades about -0.05 of its total potential returns per unit of risk. Shinkong Insurance Co is currently generating about 0.11 per unit of volatility. If you would invest 4,980 in Shinkong Insurance Co on August 26, 2024 and sell it today you would earn a total of 5,000 from holding Shinkong Insurance Co or generate 100.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chailease Holding Co vs. Shinkong Insurance Co
Performance |
| Timeline |
| Chailease Holding |
| Shinkong Insurance |
Chailease Holding and Shinkong Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chailease Holding and Shinkong Insurance
The main advantage of trading using opposite Chailease Holding and Shinkong Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chailease Holding position performs unexpectedly, Shinkong Insurance 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 Shinkong Insurance will offset losses from the drop in Shinkong Insurance's long position.| Chailease Holding vs. Fubon Financial Holding | Chailease Holding vs. CTBC Financial Holding | Chailease Holding vs. Mega Financial Holding | Chailease Holding vs. Cathay Financial Holding |
| Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding | Shinkong Insurance vs. Chailease Holding 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |