Correlation Between Shin Ruenn and HiTi Digital
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and HiTi Digital 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 HiTi Digital 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 HiTi Digital, you can compare the effects of market volatilities on Shin Ruenn and HiTi Digital 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 HiTi Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and HiTi Digital.
Diversification Opportunities for Shin Ruenn and HiTi Digital
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shin and HiTi is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and HiTi Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HiTi Digital 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 HiTi Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HiTi Digital has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and HiTi Digital go up and down completely randomly.
Pair Corralation between Shin Ruenn and HiTi Digital
Assuming the 90 days trading horizon Shin Ruenn is expected to generate 1.35 times less return on investment than HiTi Digital. But when comparing it to its historical volatility, Shin Ruenn Development is 2.81 times less risky than HiTi Digital. It trades about 0.07 of its potential returns per unit of risk. HiTi Digital is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,095 in HiTi Digital on August 30, 2024 and sell it today you would earn a total of 530.00 from holding HiTi Digital or generate 48.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Ruenn Development vs. HiTi Digital
Performance |
| Timeline |
| Shin Ruenn Development |
| HiTi Digital |
Shin Ruenn and HiTi Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and HiTi Digital
The main advantage of trading using opposite Shin Ruenn and HiTi Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, HiTi Digital 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 HiTi Digital will offset losses from the drop in HiTi Digital's long position.| Shin Ruenn vs. Highwealth Construction Corp | Shin Ruenn vs. Kunyue Development Co | Shin Ruenn vs. Leatec Fine Ceramics | Shin Ruenn vs. Information Technology Total |
| HiTi Digital vs. ASRock Inc | HiTi Digital vs. FIC Global | HiTi Digital vs. In Win Development | HiTi Digital vs. Getac Technology 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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