Correlation Between Heungkuk Metaltech and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Heungkuk Metaltech 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 Heungkuk Metaltech and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heungkuk Metaltech CoLtd and Shinhan Inverse Silver, you can compare the effects of market volatilities on Heungkuk Metaltech 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 Heungkuk Metaltech with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heungkuk Metaltech and Shinhan Inverse.
Diversification Opportunities for Heungkuk Metaltech and Shinhan Inverse
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heungkuk and Shinhan is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Heungkuk Metaltech CoLtd 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 Heungkuk Metaltech 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 Heungkuk Metaltech CoLtd 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 Heungkuk Metaltech i.e., Heungkuk Metaltech and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Heungkuk Metaltech and Shinhan Inverse
Assuming the 90 days trading horizon Heungkuk Metaltech CoLtd is expected to generate 1.69 times more return on investment than Shinhan Inverse. However, Heungkuk Metaltech is 1.69 times more volatile than Shinhan Inverse Silver. It trades about 0.26 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.12 per unit of risk. If you would invest 460,000 in Heungkuk Metaltech CoLtd on September 14, 2024 and sell it today you would earn a total of 80,000 from holding Heungkuk Metaltech CoLtd or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heungkuk Metaltech CoLtd vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Heungkuk Metaltech CoLtd |
| Shinhan Inverse Silver |
Heungkuk Metaltech and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heungkuk Metaltech and Shinhan Inverse
The main advantage of trading using opposite Heungkuk Metaltech and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heungkuk Metaltech 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.| Heungkuk Metaltech vs. Korea New Network | Heungkuk Metaltech vs. Solution Advanced Technology | Heungkuk Metaltech vs. Busan Industrial Co | Heungkuk Metaltech vs. Busan Ind |
| Shinhan Inverse vs. PJ Metal Co | Shinhan Inverse vs. Polaris Office Corp | Shinhan Inverse vs. Sempio Foods Co | Shinhan Inverse vs. Korea Alcohol Industrial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |