Correlation Between Pontex Polyblend and Shin Zu
Can any of the company-specific risk be diversified away by investing in both Pontex Polyblend 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 Pontex Polyblend and Shin Zu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pontex Polyblend CoLtd and Shin Zu Shing, you can compare the effects of market volatilities on Pontex Polyblend 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 Pontex Polyblend with a short position of Shin Zu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pontex Polyblend and Shin Zu.
Diversification Opportunities for Pontex Polyblend and Shin Zu
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pontex and Shin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Pontex Polyblend CoLtd 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 Pontex Polyblend 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 Pontex Polyblend CoLtd 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 Pontex Polyblend i.e., Pontex Polyblend and Shin Zu go up and down completely randomly.
Pair Corralation between Pontex Polyblend and Shin Zu
Assuming the 90 days trading horizon Pontex Polyblend CoLtd is expected to generate 0.64 times more return on investment than Shin Zu. However, Pontex Polyblend CoLtd is 1.57 times less risky than Shin Zu. It trades about 0.14 of its potential returns per unit of risk. Shin Zu Shing is currently generating about 0.07 per unit of risk. If you would invest 1,100 in Pontex Polyblend CoLtd on August 27, 2024 and sell it today you would earn a total of 1,285 from holding Pontex Polyblend CoLtd or generate 116.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pontex Polyblend CoLtd vs. Shin Zu Shing
Performance |
| Timeline |
| Pontex Polyblend CoLtd |
| Shin Zu Shing |
Pontex Polyblend and Shin Zu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pontex Polyblend and Shin Zu
The main advantage of trading using opposite Pontex Polyblend and Shin Zu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pontex Polyblend 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.| Pontex Polyblend vs. Loop Telecommunication International | Pontex Polyblend vs. Standard Foods Corp | Pontex Polyblend vs. Quanta Computer | Pontex Polyblend vs. Emerging Display Technologies |
| Shin Zu vs. Sunny Friend Environmental | Shin Zu vs. TTET Union Corp | Shin Zu vs. ECOVE Environment Corp | Shin Zu vs. Yulon Finance Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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