Correlation Between Shineco and Alico
Can any of the company-specific risk be diversified away by investing in both Shineco and Alico 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 Shineco and Alico into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shineco and Alico Inc, you can compare the effects of market volatilities on Shineco and Alico 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 Shineco with a short position of Alico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shineco and Alico.
Diversification Opportunities for Shineco and Alico
Poor diversification
The 3 months correlation between Shineco and Alico is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shineco and Alico Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alico Inc and Shineco 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 Shineco are associated (or correlated) with Alico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alico Inc has no effect on the direction of Shineco i.e., Shineco and Alico go up and down completely randomly.
Pair Corralation between Shineco and Alico
Given the investment horizon of 90 days Shineco is expected to generate 29.98 times more return on investment than Alico. However, Shineco is 29.98 times more volatile than Alico Inc. It trades about 0.06 of its potential returns per unit of risk. Alico Inc is currently generating about -0.01 per unit of risk. If you would invest 256.00 in Shineco on September 3, 2024 and sell it today you would lose (20.00) from holding Shineco or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shineco vs. Alico Inc
Performance |
| Timeline |
| Shineco |
| Alico Inc |
Shineco and Alico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shineco and Alico
The main advantage of trading using opposite Shineco and Alico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shineco position performs unexpectedly, Alico 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 Alico will offset losses from the drop in Alico's long position.| Shineco vs. Limoneira Co | Shineco vs. AgriFORCE Growing Systems | Shineco vs. NaturalShrimp | Shineco vs. Atlantic Sapphire ASA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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