Correlation Between Shin Ruenn and Thermaltake Technology
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Thermaltake 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 Thermaltake 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 Thermaltake Technology Co, you can compare the effects of market volatilities on Shin Ruenn and Thermaltake 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 Thermaltake Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Thermaltake Technology.
Diversification Opportunities for Shin Ruenn and Thermaltake Technology
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shin and Thermaltake is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Thermaltake Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermaltake Technology 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 Thermaltake Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermaltake Technology has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Thermaltake Technology go up and down completely randomly.
Pair Corralation between Shin Ruenn and Thermaltake Technology
Assuming the 90 days trading horizon Shin Ruenn Development is expected to generate 0.84 times more return on investment than Thermaltake Technology. However, Shin Ruenn Development is 1.19 times less risky than Thermaltake Technology. It trades about 0.06 of its potential returns per unit of risk. Thermaltake Technology Co is currently generating about -0.01 per unit of risk. If you would invest 4,275 in Shin Ruenn Development on September 2, 2024 and sell it today you would earn a total of 2,165 from holding Shin Ruenn Development or generate 50.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Ruenn Development vs. Thermaltake Technology Co
Performance |
| Timeline |
| Shin Ruenn Development |
| Thermaltake Technology |
Shin Ruenn and Thermaltake Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and Thermaltake Technology
The main advantage of trading using opposite Shin Ruenn and Thermaltake Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, Thermaltake 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 Thermaltake Technology will offset losses from the drop in Thermaltake Technology's long position.| Shin Ruenn vs. Hi Lai Foods Co | Shin Ruenn vs. Founding Construction Development | Shin Ruenn vs. Ruentex Engineering Construction | Shin Ruenn vs. Chung Hsin Electric Machinery |
| Thermaltake Technology vs. Quanta Computer | Thermaltake Technology vs. Wiwynn Corp | Thermaltake Technology vs. Getac Technology Corp | Thermaltake Technology vs. InnoDisk |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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