Correlation Between Shin Ruenn and Accton Technology
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Accton Technology 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 Accton Technology 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 Accton Technology Corp, you can compare the effects of market volatilities on Shin Ruenn and Accton Technology 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 Accton Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Accton Technology.
Diversification Opportunities for Shin Ruenn and Accton Technology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shin and Accton is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Accton Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accton Technology Corp 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 Accton Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accton Technology Corp has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Accton Technology go up and down completely randomly.
Pair Corralation between Shin Ruenn and Accton Technology
Assuming the 90 days trading horizon Shin Ruenn is expected to generate 3.04 times less return on investment than Accton Technology. In addition to that, Shin Ruenn is 1.05 times more volatile than Accton Technology Corp. It trades about 0.09 of its total potential returns per unit of risk. Accton Technology Corp is currently generating about 0.3 per unit of volatility. If you would invest 55,200 in Accton Technology Corp on August 31, 2024 and sell it today you would earn a total of 9,500 from holding Accton Technology Corp or generate 17.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Ruenn Development vs. Accton Technology Corp
Performance |
| Timeline |
| Shin Ruenn Development |
| Accton Technology Corp |
Shin Ruenn and Accton Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and Accton Technology
The main advantage of trading using opposite Shin Ruenn and Accton Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, Accton Technology 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 Accton Technology will offset losses from the drop in Accton Technology's long position.| Shin Ruenn vs. Highwealth Construction Corp | Shin Ruenn vs. Sakura Development Co | Shin Ruenn vs. Kunyue Development Co |
| Accton Technology vs. D Link Corp | Accton Technology vs. Realtek Semiconductor Corp | Accton Technology vs. Winbond Electronics Corp | Accton Technology vs. Compal Electronics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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