Correlation Between Da Cin and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both Da Cin and Shieh Yih 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 Da Cin and Shieh Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Da Cin Construction Co and Shieh Yih Machinery, you can compare the effects of market volatilities on Da Cin and Shieh Yih 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 Da Cin with a short position of Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Da Cin and Shieh Yih.
Diversification Opportunities for Da Cin and Shieh Yih
Very good diversification
The 3 months correlation between 2535 and Shieh is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Da Cin Construction Co and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery and Da Cin 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 Da Cin Construction Co are associated (or correlated) with Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of Da Cin i.e., Da Cin and Shieh Yih go up and down completely randomly.
Pair Corralation between Da Cin and Shieh Yih
Assuming the 90 days trading horizon Da Cin Construction Co is expected to generate 0.61 times more return on investment than Shieh Yih. However, Da Cin Construction Co is 1.63 times less risky than Shieh Yih. It trades about 0.21 of its potential returns per unit of risk. Shieh Yih Machinery is currently generating about 0.04 per unit of risk. If you would invest 5,020 in Da Cin Construction Co on September 26, 2024 and sell it today you would earn a total of 320.00 from holding Da Cin Construction Co or generate 6.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Da Cin Construction Co vs. Shieh Yih Machinery
Performance |
Timeline |
Da Cin Construction |
Shieh Yih Machinery |
Da Cin and Shieh Yih Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Da Cin and Shieh Yih
The main advantage of trading using opposite Da Cin and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Da Cin position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.Da Cin vs. Yang Ming Marine | Da Cin vs. Evergreen Marine Corp | Da Cin vs. Eva Airways Corp | Da Cin vs. U Ming Marine Transport |
Shieh Yih vs. Yang Ming Marine | Shieh Yih vs. Evergreen Marine Corp | Shieh Yih vs. Eva Airways Corp | Shieh Yih vs. U Ming Marine Transport |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Stocks Directory Find actively traded stocks across global markets |