Correlation Between Samyung Trading and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Shinhan Inverse 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 Samyung Trading and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyung Trading Co and Shinhan Inverse Silver, you can compare the effects of market volatilities on Samyung Trading and Shinhan Inverse 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 Samyung Trading with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Shinhan Inverse.
Diversification Opportunities for Samyung Trading and Shinhan Inverse
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samyung and Shinhan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Shinhan Inverse Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Silver and Samyung Trading 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 Samyung Trading Co are associated (or correlated) with Shinhan Inverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Inverse Silver has no effect on the direction of Samyung Trading i.e., Samyung Trading and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Samyung Trading and Shinhan Inverse
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.41 times more return on investment than Shinhan Inverse. However, Samyung Trading Co is 2.44 times less risky than Shinhan Inverse. It trades about 0.35 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.02 per unit of risk. If you would invest 1,250,000 in Samyung Trading Co on November 27, 2024 and sell it today you would earn a total of 53,000 from holding Samyung Trading Co or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Samyung Trading |
| Shinhan Inverse Silver |
Samyung Trading and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Shinhan Inverse
The main advantage of trading using opposite Samyung Trading and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Shinhan Inverse 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 Shinhan Inverse will offset losses from the drop in Shinhan Inverse's long position.| Samyung Trading vs. BGF Retail Co | Samyung Trading vs. Korea Electronic Certification | Samyung Trading vs. Jahwa Electronics Co | Samyung Trading vs. Samwha Electronics Co |
| Shinhan Inverse vs. PI Advanced Materials | Shinhan Inverse vs. Hana Materials | Shinhan Inverse vs. Hannong Chemicals | Shinhan Inverse vs. Hyundai Engineering Plastics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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