Correlation Between Bosung Power and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Bosung Power 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 Bosung Power and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosung Power Technology and Shinhan Inverse Silver, you can compare the effects of market volatilities on Bosung Power 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 Bosung Power with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and Shinhan Inverse.
Diversification Opportunities for Bosung Power and Shinhan Inverse
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosung and Shinhan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology 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 Bosung Power 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 Bosung Power Technology 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 Bosung Power i.e., Bosung Power and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Bosung Power and Shinhan Inverse
Assuming the 90 days trading horizon Bosung Power Technology is expected to generate 1.65 times more return on investment than Shinhan Inverse. However, Bosung Power is 1.65 times more volatile than Shinhan Inverse Silver. It trades about 0.0 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.03 per unit of risk. If you would invest 391,000 in Bosung Power Technology on November 8, 2024 and sell it today you would lose (97,000) from holding Bosung Power Technology or give up 24.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Bosung Power Technology vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Bosung Power Technology |
| Shinhan Inverse Silver |
Bosung Power and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and Shinhan Inverse
The main advantage of trading using opposite Bosung Power and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power 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.| Bosung Power vs. SCI Information Service | Bosung Power vs. Ssangyong Information Communication | Bosung Power vs. Inzi Display CoLtd | Bosung Power vs. Insung Information Co |
| Shinhan Inverse vs. Lake Materials Co | Shinhan Inverse vs. Next Entertainment World | Shinhan Inverse vs. Ssangyong Materials Corp | Shinhan Inverse vs. Barunson Entertainment Arts |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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