Correlation Between Shinih Enterprise and Yulon Finance
Can any of the company-specific risk be diversified away by investing in both Shinih Enterprise and Yulon Finance 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 Shinih Enterprise and Yulon Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinih Enterprise Co and Yulon Finance Corp, you can compare the effects of market volatilities on Shinih Enterprise and Yulon Finance 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 Shinih Enterprise with a short position of Yulon Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinih Enterprise and Yulon Finance.
Diversification Opportunities for Shinih Enterprise and Yulon Finance
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinih and Yulon is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shinih Enterprise Co and Yulon Finance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yulon Finance Corp and Shinih Enterprise 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 Shinih Enterprise Co are associated (or correlated) with Yulon Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yulon Finance Corp has no effect on the direction of Shinih Enterprise i.e., Shinih Enterprise and Yulon Finance go up and down completely randomly.
Pair Corralation between Shinih Enterprise and Yulon Finance
Assuming the 90 days trading horizon Shinih Enterprise Co is expected to generate 0.15 times more return on investment than Yulon Finance. However, Shinih Enterprise Co is 6.53 times less risky than Yulon Finance. It trades about -0.03 of its potential returns per unit of risk. Yulon Finance Corp is currently generating about -0.3 per unit of risk. If you would invest 2,055 in Shinih Enterprise Co on September 1, 2024 and sell it today you would lose (5.00) from holding Shinih Enterprise Co or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shinih Enterprise Co vs. Yulon Finance Corp
Performance |
| Timeline |
| Shinih Enterprise |
| Yulon Finance Corp |
Shinih Enterprise and Yulon Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinih Enterprise and Yulon Finance
The main advantage of trading using opposite Shinih Enterprise and Yulon Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinih Enterprise position performs unexpectedly, Yulon Finance 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 Yulon Finance will offset losses from the drop in Yulon Finance's long position.| Shinih Enterprise vs. Ton Yi Industrial | Shinih Enterprise vs. Super Dragon Technology | Shinih Enterprise vs. Min Aik Technology | Shinih Enterprise vs. Hung Sheng Construction |
| Yulon Finance vs. Central Reinsurance Corp | Yulon Finance vs. Huaku Development Co | Yulon Finance vs. Fubon Financial Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |