Correlation Between Shin Ruenn and PChome Online
Can any of the company-specific risk be diversified away by investing in both Shin Ruenn and PChome Online 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 PChome Online 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 PChome Online, you can compare the effects of market volatilities on Shin Ruenn and PChome Online 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 PChome Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Ruenn and PChome Online.
Diversification Opportunities for Shin Ruenn and PChome Online
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shin and PChome is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shin Ruenn Development and PChome Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PChome Online 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 PChome Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PChome Online has no effect on the direction of Shin Ruenn i.e., Shin Ruenn and PChome Online go up and down completely randomly.
Pair Corralation between Shin Ruenn and PChome Online
Assuming the 90 days trading horizon Shin Ruenn Development is expected to generate 0.98 times more return on investment than PChome Online. However, Shin Ruenn Development is 1.02 times less risky than PChome Online. It trades about 0.33 of its potential returns per unit of risk. PChome Online is currently generating about 0.06 per unit of risk. If you would invest 5,980 in Shin Ruenn Development on December 4, 2024 and sell it today you would earn a total of 590.00 from holding Shin Ruenn Development or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Ruenn Development vs. PChome Online
Performance |
| Timeline |
| Shin Ruenn Development |
| PChome Online |
Shin Ruenn and PChome Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Ruenn and PChome Online
The main advantage of trading using opposite Shin Ruenn and PChome Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Ruenn position performs unexpectedly, PChome Online 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 PChome Online will offset losses from the drop in PChome Online's long position.| Shin Ruenn vs. Phoenix Silicon International | Shin Ruenn vs. Hsinli Chemical Industrial | Shin Ruenn vs. Chiu Ting Machinery | Shin Ruenn vs. Cathay Chemical Works |
| PChome Online vs. momo Inc | PChome Online vs. President Chain Store | PChome Online vs. Uni President Enterprises Corp | PChome Online vs. Taiwan FamilyMart 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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