Correlation Between Shin Ruenn and Xander International
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Xander 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 Xander 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 Xander International, you can compare the effects of market volatilities on Shin Ruenn and Xander 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 Xander International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Xander International.
Diversification Opportunities for Shin Ruenn and Xander International
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shin and Xander is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Xander International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xander 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 Xander International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xander International has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Xander International go up and down completely randomly.
Pair Corralation between Shin Ruenn and Xander International
Assuming the 90 days trading horizon Shin Ruenn Development is expected to generate 0.94 times more return on investment than Xander International. However, Shin Ruenn Development is 1.06 times less risky than Xander International. It trades about 0.07 of its potential returns per unit of risk. Xander International is currently generating about -0.04 per unit of risk. If you would invest 3,210 in Shin Ruenn Development on August 27, 2024 and sell it today you would earn a total of 3,070 from holding Shin Ruenn Development or generate 95.64% 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. Xander International
Performance |
| Timeline |
| Shin Ruenn Development |
| Xander International |
Shin Ruenn and Xander International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and Xander International
The main advantage of trading using opposite Shin Ruenn and Xander International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, Xander 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 Xander International will offset losses from the drop in Xander International'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 |
| Xander International vs. Novatek Microelectronics Corp | Xander International vs. Quanta Computer | Xander International 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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