Correlation Between Ruentex Development and Sinopac ICE
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By analyzing existing cross correlation between Ruentex Development Co and Sinopac ICE 10, you can compare the effects of market volatilities on Ruentex Development and Sinopac ICE 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 Ruentex Development with a short position of Sinopac ICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruentex Development and Sinopac ICE.
Diversification Opportunities for Ruentex Development and Sinopac ICE
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ruentex and Sinopac is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ruentex Development Co and Sinopac ICE 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopac ICE 10 and Ruentex Development 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 Ruentex Development Co are associated (or correlated) with Sinopac ICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopac ICE 10 has no effect on the direction of Ruentex Development i.e., Ruentex Development and Sinopac ICE go up and down completely randomly.
Pair Corralation between Ruentex Development and Sinopac ICE
Assuming the 90 days trading horizon Ruentex Development Co is expected to under-perform the Sinopac ICE. In addition to that, Ruentex Development is 1.86 times more volatile than Sinopac ICE 10. It trades about -0.1 of its total potential returns per unit of risk. Sinopac ICE 10 is currently generating about 0.39 per unit of volatility. If you would invest 3,043 in Sinopac ICE 10 on September 5, 2024 and sell it today you would earn a total of 165.00 from holding Sinopac ICE 10 or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ruentex Development Co vs. Sinopac ICE 10
Performance |
| Timeline |
| Ruentex Development |
| Sinopac ICE 10 |
Ruentex Development and Sinopac ICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ruentex Development and Sinopac ICE
The main advantage of trading using opposite Ruentex Development and Sinopac ICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ruentex Development position performs unexpectedly, Sinopac ICE 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 Sinopac ICE will offset losses from the drop in Sinopac ICE's long position.| Ruentex Development vs. Ruentex Industries | Ruentex Development vs. Pou Chen Corp | Ruentex Development vs. Fubon Financial Holding | Ruentex Development vs. Cathay Financial Holding |
| Sinopac ICE vs. Ruentex Development Co | Sinopac ICE vs. Symtek Automation Asia | Sinopac ICE vs. CTCI Corp | Sinopac ICE vs. Information Technology Total |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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