Correlation Between FOODWELL and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both FOODWELL 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 FOODWELL and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOODWELL Co and Shinhan Inverse WTI, you can compare the effects of market volatilities on FOODWELL 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 FOODWELL with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOODWELL and Shinhan Inverse.
Diversification Opportunities for FOODWELL and Shinhan Inverse
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FOODWELL and Shinhan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding FOODWELL Co and Shinhan Inverse WTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse WTI and FOODWELL 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 FOODWELL 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 WTI has no effect on the direction of FOODWELL i.e., FOODWELL and Shinhan Inverse go up and down completely randomly.
Pair Corralation between FOODWELL and Shinhan Inverse
Assuming the 90 days trading horizon FOODWELL Co is expected to generate 0.94 times more return on investment than Shinhan Inverse. However, FOODWELL Co is 1.06 times less risky than Shinhan Inverse. It trades about 0.17 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about -0.26 per unit of risk. If you would invest 502,000 in FOODWELL Co on October 26, 2024 and sell it today you would earn a total of 24,000 from holding FOODWELL Co or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOODWELL Co vs. Shinhan Inverse WTI
Performance |
| Timeline |
| FOODWELL |
| Shinhan Inverse WTI |
FOODWELL and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOODWELL and Shinhan Inverse
The main advantage of trading using opposite FOODWELL and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOODWELL 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.| FOODWELL vs. DC Media Co | FOODWELL vs. Tamul Multimedia Co | FOODWELL vs. ChipsMedia | FOODWELL vs. Daewon Media Co |
| Shinhan Inverse vs. Innowireless Co | Shinhan Inverse vs. Lotte Chilsung Beverage | Shinhan Inverse vs. CKH Food Health | Shinhan Inverse vs. FOODWELL 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |