Correlation Between Dongbang Transport and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport 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 Dongbang Transport and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and Shinhan Inverse Silver, you can compare the effects of market volatilities on Dongbang Transport 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 Dongbang Transport with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Shinhan Inverse.
Diversification Opportunities for Dongbang Transport and Shinhan Inverse
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongbang and Shinhan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics 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 Dongbang Transport 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 Dongbang Transport Logistics 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 Dongbang Transport i.e., Dongbang Transport and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Dongbang Transport and Shinhan Inverse
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the Shinhan Inverse. In addition to that, Dongbang Transport is 1.09 times more volatile than Shinhan Inverse Silver. It trades about -0.03 of its total potential returns per unit of risk. Shinhan Inverse Silver is currently generating about 0.22 per unit of volatility. If you would invest 324,500 in Shinhan Inverse Silver on September 1, 2024 and sell it today you would earn a total of 31,000 from holding Shinhan Inverse Silver or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Dongbang Transport |
| Shinhan Inverse Silver |
Dongbang Transport and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Shinhan Inverse
The main advantage of trading using opposite Dongbang Transport and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport 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.| Dongbang Transport vs. Infinitt Healthcare Co | Dongbang Transport vs. LG Household Healthcare | Dongbang Transport vs. Cube Entertainment | Dongbang Transport vs. Digital Multimedia Technology |
| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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