Correlation Between Kirin Holdings and Shimano
Can any of the company-specific risk be diversified away by investing in both Kirin Holdings and Shimano 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 Kirin Holdings and Shimano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirin Holdings Co and Shimano Inc ADR, you can compare the effects of market volatilities on Kirin Holdings and Shimano 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 Kirin Holdings with a short position of Shimano. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirin Holdings and Shimano.
Diversification Opportunities for Kirin Holdings and Shimano
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kirin and Shimano is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kirin Holdings Co and Shimano Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shimano Inc ADR and Kirin Holdings 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 Kirin Holdings Co are associated (or correlated) with Shimano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shimano Inc ADR has no effect on the direction of Kirin Holdings i.e., Kirin Holdings and Shimano go up and down completely randomly.
Pair Corralation between Kirin Holdings and Shimano
Assuming the 90 days horizon Kirin Holdings Co is expected to under-perform the Shimano. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kirin Holdings Co is 1.63 times less risky than Shimano. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Shimano Inc ADR is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,662 in Shimano Inc ADR on August 31, 2024 and sell it today you would lose (275.00) from holding Shimano Inc ADR or give up 16.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 8.56% |
| Values | Daily Returns |
Kirin Holdings Co vs. Shimano Inc ADR
Performance |
| Timeline |
| Kirin Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shimano Inc ADR |
Kirin Holdings and Shimano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirin Holdings and Shimano
The main advantage of trading using opposite Kirin Holdings and Shimano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirin Holdings position performs unexpectedly, Shimano 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 Shimano will offset losses from the drop in Shimano's long position.| Kirin Holdings vs. Tsingtao Brewery Co | Kirin Holdings vs. Suntory Beverage Food | Kirin Holdings vs. Heineken NV | Kirin Holdings vs. Compania Cervecerias Unidas |
| Shimano vs. Callaway Golf | Shimano vs. Peloton Interactive | Shimano vs. BANDAI NAMCO Holdings | Shimano vs. Nikon 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |