Correlation Between Shin Ruenn and Green World
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and Green World 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 Green World 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 Green World Fintech, you can compare the effects of market volatilities on Shin Ruenn and Green World 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 Green World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and Green World.
Diversification Opportunities for Shin Ruenn and Green World
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shin and Green is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and Green World Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green World Fintech 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 Green World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green World Fintech has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and Green World go up and down completely randomly.
Pair Corralation between Shin Ruenn and Green World
Assuming the 90 days trading horizon Shin Ruenn Development is expected to generate 0.86 times more return on investment than Green World. However, Shin Ruenn Development is 1.16 times less risky than Green World. It trades about -0.09 of its potential returns per unit of risk. Green World Fintech is currently generating about -0.23 per unit of risk. If you would invest 6,280 in Shin Ruenn Development on September 23, 2024 and sell it today you would lose (260.00) from holding Shin Ruenn Development or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Ruenn Development vs. Green World Fintech
Performance |
| Timeline |
| Shin Ruenn Development |
| Green World Fintech |
Shin Ruenn and Green World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and Green World
The main advantage of trading using opposite Shin Ruenn and Green World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, Green World 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 Green World will offset losses from the drop in Green World's long position.| Shin Ruenn vs. Highwealth Construction Corp | Shin Ruenn vs. Sakura Development Co | Shin Ruenn vs. Kunyue Development Co | Shin Ruenn vs. Tacheng Real Estate |
| Green World vs. Digital China Holdings | Green World vs. Acer E Enabling Service | Green World vs. Sysage Technology Co | Green World vs. Wistron Information Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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