Correlation Between Daelim Trading and Shinhan WTI
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Shinhan WTI 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 Daelim Trading and Shinhan WTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Trading Co and Shinhan WTI Futures, you can compare the effects of market volatilities on Daelim Trading and Shinhan WTI 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 Daelim Trading with a short position of Shinhan WTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Shinhan WTI.
Diversification Opportunities for Daelim Trading and Shinhan WTI
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daelim and Shinhan is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Shinhan WTI Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan WTI Futures and Daelim 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 Daelim Trading Co are associated (or correlated) with Shinhan WTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan WTI Futures has no effect on the direction of Daelim Trading i.e., Daelim Trading and Shinhan WTI go up and down completely randomly.
Pair Corralation between Daelim Trading and Shinhan WTI
Assuming the 90 days trading horizon Daelim Trading Co is expected to under-perform the Shinhan WTI. In addition to that, Daelim Trading is 1.51 times more volatile than Shinhan WTI Futures. It trades about -0.08 of its total potential returns per unit of risk. Shinhan WTI Futures is currently generating about 0.14 per unit of volatility. If you would invest 738,000 in Shinhan WTI Futures on October 26, 2024 and sell it today you would earn a total of 64,000 from holding Shinhan WTI Futures or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. Shinhan WTI Futures
Performance |
| Timeline |
| Daelim Trading |
| Shinhan WTI Futures |
Daelim Trading and Shinhan WTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Shinhan WTI
The main advantage of trading using opposite Daelim Trading and Shinhan WTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Shinhan WTI 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 WTI will offset losses from the drop in Shinhan WTI's long position.| Daelim Trading vs. Organic Special Pet | Daelim Trading vs. Lotte Rental Co | Daelim Trading vs. Samyang Foods Co | Daelim Trading vs. Kukil Metal Co |
| Shinhan WTI vs. Kisan Telecom Co | Shinhan WTI vs. Mgame Corp | Shinhan WTI vs. Daishin Information Communications | Shinhan WTI vs. Daelim Trading 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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