Correlation Between Hanwha InvestmentSecuri and Shin Steel
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and Shin Steel 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 Hanwha InvestmentSecuri and Shin Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanwha InvestmentSecurities Co and Shin Steel Co, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and Shin Steel 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 Hanwha InvestmentSecuri with a short position of Shin Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and Shin Steel.
Diversification Opportunities for Hanwha InvestmentSecuri and Shin Steel
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanwha and Shin is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and Shin Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Steel and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecurities Co are associated (or correlated) with Shin Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Steel has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and Shin Steel go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and Shin Steel
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to under-perform the Shin Steel. In addition to that, Hanwha InvestmentSecuri is 1.32 times more volatile than Shin Steel Co. It trades about -0.29 of its total potential returns per unit of risk. Shin Steel Co is currently generating about 0.11 per unit of volatility. If you would invest 234,000 in Shin Steel Co on November 27, 2024 and sell it today you would earn a total of 6,000 from holding Shin Steel Co or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanwha InvestmentSecurities Co vs. Shin Steel Co
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| Shin Steel |
Hanwha InvestmentSecuri and Shin Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and Shin Steel
The main advantage of trading using opposite Hanwha InvestmentSecuri and Shin Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, Shin Steel 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 Shin Steel will offset losses from the drop in Shin Steel's long position.| Hanwha InvestmentSecuri vs. Incar Financial Service | Hanwha InvestmentSecuri vs. Jeju Air Co | Hanwha InvestmentSecuri vs. Dgb Financial | Hanwha InvestmentSecuri vs. InfoBank |
| Shin Steel vs. Korea Computer | Shin Steel vs. Sewoon Medical Co | Shin Steel vs. Industrial Bank | Shin Steel vs. Hyundai Industrial Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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