Correlation Between Acbel Polytech and Shin Zu
Can any of the company-specific risk be diversified away by investing in both Acbel Polytech and Shin Zu 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 Acbel Polytech and Shin Zu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acbel Polytech and Shin Zu Shing, you can compare the effects of market volatilities on Acbel Polytech and Shin Zu 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 Acbel Polytech with a short position of Shin Zu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acbel Polytech and Shin Zu.
Diversification Opportunities for Acbel Polytech and Shin Zu
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acbel and Shin is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Acbel Polytech and Shin Zu Shing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Zu Shing and Acbel Polytech 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 Acbel Polytech are associated (or correlated) with Shin Zu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Zu Shing has no effect on the direction of Acbel Polytech i.e., Acbel Polytech and Shin Zu go up and down completely randomly.
Pair Corralation between Acbel Polytech and Shin Zu
Assuming the 90 days trading horizon Acbel Polytech is expected to under-perform the Shin Zu. But the stock apears to be less risky and, when comparing its historical volatility, Acbel Polytech is 1.47 times less risky than Shin Zu. The stock trades about -0.03 of its potential returns per unit of risk. The Shin Zu Shing is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,876 in Shin Zu Shing on September 4, 2024 and sell it today you would earn a total of 10,624 from holding Shin Zu Shing or generate 119.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Acbel Polytech vs. Shin Zu Shing
Performance |
| Timeline |
| Acbel Polytech |
| Shin Zu Shing |
Acbel Polytech and Shin Zu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acbel Polytech and Shin Zu
The main advantage of trading using opposite Acbel Polytech and Shin Zu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acbel Polytech position performs unexpectedly, Shin Zu 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 Shin Zu will offset losses from the drop in Shin Zu's long position.| Acbel Polytech vs. Universal Microelectronics Co | Acbel Polytech vs. AVerMedia Technologies | Acbel Polytech vs. Symtek Automation Asia | Acbel Polytech vs. WiseChip Semiconductor |
| Shin Zu vs. Catcher Technology Co | Shin Zu vs. Tripod Technology Corp | Shin Zu vs. Chicony Electronics Co | Shin Zu vs. Kinsus Interconnect 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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