Correlation Between Daou Data and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Daou Data 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 Daou Data and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daou Data Corp and Shinhan Inverse WTI, you can compare the effects of market volatilities on Daou Data 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 Daou Data with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Data and Shinhan Inverse.
Diversification Opportunities for Daou Data and Shinhan Inverse
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daou and Shinhan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Daou Data Corp and Shinhan Inverse WTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse WTI and Daou Data 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 Daou Data Corp 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 WTI has no effect on the direction of Daou Data i.e., Daou Data and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Daou Data and Shinhan Inverse
Assuming the 90 days trading horizon Daou Data Corp is expected to generate 0.39 times more return on investment than Shinhan Inverse. However, Daou Data Corp is 2.56 times less risky than Shinhan Inverse. It trades about 0.0 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about -0.11 per unit of risk. If you would invest 1,007,000 in Daou Data Corp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Daou Data Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daou Data Corp vs. Shinhan Inverse WTI
Performance |
| Timeline |
| Daou Data Corp |
| Shinhan Inverse WTI |
Daou Data and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Data and Shinhan Inverse
The main advantage of trading using opposite Daou Data and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Data 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.| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
| Shinhan Inverse vs. Golden Bridge Investment | Shinhan Inverse vs. Daesung Industrial Co | Shinhan Inverse vs. Seoul Food Industrial | Shinhan Inverse vs. Cloud Air CoLtd |
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.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |