Correlation Between Shimano and Stingray
Can any of the company-specific risk be diversified away by investing in both Shimano and Stingray 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 Shimano and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shimano Inc ADR and Stingray Group, you can compare the effects of market volatilities on Shimano and Stingray 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 Shimano with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shimano and Stingray.
Diversification Opportunities for Shimano and Stingray
Modest diversification
The 3 months correlation between Shimano and Stingray is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shimano Inc ADR and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and Shimano 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 Shimano Inc ADR are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Shimano i.e., Shimano and Stingray go up and down completely randomly.
Pair Corralation between Shimano and Stingray
Assuming the 90 days horizon Shimano Inc ADR is expected to under-perform the Stingray. But the pink sheet apears to be less risky and, when comparing its historical volatility, Shimano Inc ADR is 1.3 times less risky than Stingray. The pink sheet trades about -0.23 of its potential returns per unit of risk. The Stingray Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 532.00 in Stingray Group on August 27, 2024 and sell it today you would earn a total of 37.00 from holding Stingray Group or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shimano Inc ADR vs. Stingray Group
Performance |
| Timeline |
| Shimano Inc ADR |
| Stingray Group |
Shimano and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shimano and Stingray
The main advantage of trading using opposite Shimano and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shimano position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Shimano vs. Callaway Golf | Shimano vs. Peloton Interactive | Shimano vs. BANDAI NAMCO Holdings | Shimano vs. Nikon Corp |
| Stingray vs. Ironveld Plc | Stingray vs. ArcelorMittal SA ADR | Stingray vs. PennantPark Floating Rate | Stingray vs. CECO Environmental 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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