Correlation Between Kyung In and Shinhan WTI
Can any of the company-specific risk be diversified away by investing in both Kyung In 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 Kyung In and Shinhan WTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyung In Synthetic Corp and Shinhan WTI Futures, you can compare the effects of market volatilities on Kyung In 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 Kyung In with a short position of Shinhan WTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Shinhan WTI.
Diversification Opportunities for Kyung In and Shinhan WTI
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kyung and Shinhan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp 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 Kyung In 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 Kyung In Synthetic Corp 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 Kyung In i.e., Kyung In and Shinhan WTI go up and down completely randomly.
Pair Corralation between Kyung In and Shinhan WTI
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to under-perform the Shinhan WTI. In addition to that, Kyung In is 1.01 times more volatile than Shinhan WTI Futures. It trades about -0.03 of its total potential returns per unit of risk. Shinhan WTI Futures is currently generating about 0.02 per unit of volatility. If you would invest 695,000 in Shinhan WTI Futures on October 13, 2024 and sell it today you would earn a total of 86,500 from holding Shinhan WTI Futures or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.76% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Shinhan WTI Futures
Performance |
| Timeline |
| Kyung In Synthetic |
| Shinhan WTI Futures |
Kyung In and Shinhan WTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Shinhan WTI
The main advantage of trading using opposite Kyung In and Shinhan WTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In 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.| Kyung In vs. Bosung Power Technology | Kyung In vs. Seoam Machinery Industry | Kyung In vs. Camus Engineering Construction | Kyung In vs. Hwangkum Steel Technology |
| Shinhan WTI vs. Kyung In Synthetic Corp | Shinhan WTI vs. Sung Bo Chemicals | Shinhan WTI vs. Hanwha Chemical Corp | Shinhan WTI vs. KPX Green Chemical |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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