Correlation Between Seoyon Topmetal and Shin Steel
Can any of the company-specific risk be diversified away by investing in both Seoyon Topmetal and Shin Steel 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 Seoyon Topmetal and Shin Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoyon Topmetal Co and Shin Steel Co, you can compare the effects of market volatilities on Seoyon Topmetal and Shin Steel 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 Seoyon Topmetal with a short position of Shin Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoyon Topmetal and Shin Steel.
Diversification Opportunities for Seoyon Topmetal and Shin Steel
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seoyon and Shin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Seoyon Topmetal Co and Shin Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Steel and Seoyon Topmetal 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 Seoyon Topmetal Co are associated (or correlated) with Shin Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Steel has no effect on the direction of Seoyon Topmetal i.e., Seoyon Topmetal and Shin Steel go up and down completely randomly.
Pair Corralation between Seoyon Topmetal and Shin Steel
Assuming the 90 days trading horizon Seoyon Topmetal Co is expected to generate 0.57 times more return on investment than Shin Steel. However, Seoyon Topmetal Co is 1.75 times less risky than Shin Steel. It trades about 0.01 of its potential returns per unit of risk. Shin Steel Co is currently generating about -0.09 per unit of risk. If you would invest 348,500 in Seoyon Topmetal Co on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Seoyon Topmetal Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoyon Topmetal Co vs. Shin Steel Co
Performance |
| Timeline |
| Seoyon Topmetal |
| Shin Steel |
Seoyon Topmetal and Shin Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoyon Topmetal and Shin Steel
The main advantage of trading using opposite Seoyon Topmetal and Shin Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoyon Topmetal position performs unexpectedly, Shin Steel 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 Shin Steel will offset losses from the drop in Shin Steel's long position.| Seoyon Topmetal vs. Lake Materials Co | Seoyon Topmetal vs. Innowireless Co | Seoyon Topmetal vs. RF Materials Co | Seoyon Topmetal vs. MEDIANA CoLtd |
| Shin Steel vs. Chorokbaem Healthcare Co | Shin Steel vs. Bosung Power Technology | Shin Steel vs. INFINITT Healthcare Co | Shin Steel vs. Air Busan 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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