Correlation Between Semyung Electric and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Semyung Electric 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 Semyung Electric and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semyung Electric Machinery and Shinhan Inverse Copper, you can compare the effects of market volatilities on Semyung Electric 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 Semyung Electric with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semyung Electric and Shinhan Inverse.
Diversification Opportunities for Semyung Electric and Shinhan Inverse
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Semyung and Shinhan is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Semyung Electric Machinery and Shinhan Inverse Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Copper and Semyung Electric 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 Semyung Electric Machinery 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 Copper has no effect on the direction of Semyung Electric i.e., Semyung Electric and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Semyung Electric and Shinhan Inverse
Assuming the 90 days trading horizon Semyung Electric Machinery is expected to under-perform the Shinhan Inverse. In addition to that, Semyung Electric is 2.31 times more volatile than Shinhan Inverse Copper. It trades about -0.22 of its total potential returns per unit of risk. Shinhan Inverse Copper is currently generating about 0.29 per unit of volatility. If you would invest 524,500 in Shinhan Inverse Copper on September 5, 2024 and sell it today you would earn a total of 44,500 from holding Shinhan Inverse Copper or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Semyung Electric Machinery vs. Shinhan Inverse Copper
Performance |
| Timeline |
| Semyung Electric Mac |
| Shinhan Inverse Copper |
Semyung Electric and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semyung Electric and Shinhan Inverse
The main advantage of trading using opposite Semyung Electric and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semyung Electric 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.| Semyung Electric vs. PLAYWITH | Semyung Electric vs. Hyundai Engineering Plastics | Semyung Electric vs. Hana Materials | Semyung Electric vs. Lake Materials Co |
| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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