Correlation Between Shin Ruenn and Leadtrend Technology
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Leadtrend 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 Leadtrend 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 Leadtrend Technology Corp, you can compare the effects of market volatilities on Shin Ruenn and Leadtrend 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 Leadtrend Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Leadtrend Technology.
Diversification Opportunities for Shin Ruenn and Leadtrend Technology
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shin and Leadtrend is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Leadtrend Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leadtrend 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 Leadtrend Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leadtrend Technology Corp has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Leadtrend Technology go up and down completely randomly.
Pair Corralation between Shin Ruenn and Leadtrend Technology
Assuming the 90 days trading horizon Shin Ruenn Development is expected to generate 1.19 times more return on investment than Leadtrend Technology. However, Shin Ruenn is 1.19 times more volatile than Leadtrend Technology Corp. It trades about 0.04 of its potential returns per unit of risk. Leadtrend Technology Corp is currently generating about -0.08 per unit of risk. If you would invest 5,570 in Shin Ruenn Development on August 27, 2024 and sell it today you would earn a total of 710.00 from holding Shin Ruenn Development or generate 12.75% 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. Leadtrend Technology Corp
Performance |
| Timeline |
| Shin Ruenn Development |
| Leadtrend Technology Corp |
Shin Ruenn and Leadtrend Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and Leadtrend Technology
The main advantage of trading using opposite Shin Ruenn and Leadtrend Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, Leadtrend 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 Leadtrend Technology will offset losses from the drop in Leadtrend Technology's long position.| Shin Ruenn vs. Standard Foods Corp | Shin Ruenn vs. Jentech Precision Industrial | Shin Ruenn vs. De Licacy Industrial | Shin Ruenn vs. Shuang Bang Industrial |
| Leadtrend Technology vs. Novatek Microelectronics Corp | Leadtrend Technology vs. Quanta Computer | Leadtrend Technology vs. United Microelectronics |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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