Correlation Between Shin Ruenn and Trade Van
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Trade Van 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 Trade Van 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 Trade Van Information Services, you can compare the effects of market volatilities on Shin Ruenn and Trade Van 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 Trade Van. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Trade Van.
Diversification Opportunities for Shin Ruenn and Trade Van
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shin and Trade is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Trade Van Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trade Van Information 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 Trade Van. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trade Van Information has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Trade Van go up and down completely randomly.
Pair Corralation between Shin Ruenn and Trade Van
Assuming the 90 days trading horizon Shin Ruenn Development is expected to generate 2.1 times more return on investment than Trade Van. However, Shin Ruenn is 2.1 times more volatile than Trade Van Information Services. It trades about 0.16 of its potential returns per unit of risk. Trade Van Information Services is currently generating about 0.17 per unit of risk. If you would invest 6,020 in Shin Ruenn Development on August 28, 2024 and sell it today you would earn a total of 520.00 from holding Shin Ruenn Development or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Ruenn Development vs. Trade Van Information Services
Performance |
| Timeline |
| Shin Ruenn Development |
| Trade Van Information |
Shin Ruenn and Trade Van Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and Trade Van
The main advantage of trading using opposite Shin Ruenn and Trade Van positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, Trade Van 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 Trade Van will offset losses from the drop in Trade Van's long position.| Shin Ruenn vs. WINSON Machinery Co | Shin Ruenn vs. Farglory FTZ Investment | Shin Ruenn vs. Sports Gear Co | Shin Ruenn vs. Kindom Construction Corp |
| Trade Van vs. Taiwan Sakura Corp | Trade Van vs. Charoen Pokphand Enterprise | Trade Van vs. Taiwan Cogeneration Corp | Trade Van vs. Taiwan Secom Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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