Correlation Between Shin Ruenn and Macronix International
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Macronix International 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 Shin Ruenn and Macronix International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Ruenn Development and Macronix International Co, you can compare the effects of market volatilities on Shin Ruenn and Macronix International 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 Shin Ruenn with a short position of Macronix International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Macronix International.
Diversification Opportunities for Shin Ruenn and Macronix International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shin and Macronix is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Macronix International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macronix International and Shin Ruenn 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 Shin Ruenn Development are associated (or correlated) with Macronix International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macronix International has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Macronix International go up and down completely randomly.
Pair Corralation between Shin Ruenn and Macronix International
Assuming the 90 days trading horizon Shin Ruenn Development is expected to generate 1.16 times more return on investment than Macronix International. However, Shin Ruenn is 1.16 times more volatile than Macronix International Co. It trades about 0.13 of its potential returns per unit of risk. Macronix International Co is currently generating about -0.27 per unit of risk. If you would invest 6,010 in Shin Ruenn Development on September 1, 2024 and sell it today you would earn a total of 430.00 from holding Shin Ruenn Development or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Ruenn Development vs. Macronix International Co
Performance |
| Timeline |
| Shin Ruenn Development |
| Macronix International |
Shin Ruenn and Macronix International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and Macronix International
The main advantage of trading using opposite Shin Ruenn and Macronix International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, Macronix International 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 Macronix International will offset losses from the drop in Macronix International's long position.| Shin Ruenn vs. Everlight Chemical Industrial | Shin Ruenn vs. Formosa Chemicals Fibre | Shin Ruenn vs. Amtran Technology Co | Shin Ruenn vs. Sunnic Technology Merchandise |
| Macronix International vs. United Microelectronics | Macronix International vs. Winbond Electronics Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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