Correlation Between Jeong Moon and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Jeong Moon 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 Jeong Moon and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeong Moon Information and Shinhan Inverse Silver, you can compare the effects of market volatilities on Jeong Moon 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 Jeong Moon with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and Shinhan Inverse.
Diversification Opportunities for Jeong Moon and Shinhan Inverse
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeong and Shinhan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information 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 Jeong Moon 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 Jeong Moon Information 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 Jeong Moon i.e., Jeong Moon and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Jeong Moon and Shinhan Inverse
Assuming the 90 days trading horizon Jeong Moon Information is expected to generate 0.73 times more return on investment than Shinhan Inverse. However, Jeong Moon Information is 1.37 times less risky than Shinhan Inverse. It trades about 0.13 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.18 per unit of risk. If you would invest 83,600 in Jeong Moon Information on November 9, 2024 and sell it today you would earn a total of 2,800 from holding Jeong Moon Information or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Jeong Moon Information |
| Shinhan Inverse Silver |
Jeong Moon and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and Shinhan Inverse
The main advantage of trading using opposite Jeong Moon and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon 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.| Jeong Moon vs. V One Tech Co | Jeong Moon vs. Ewon Comfortech Co | Jeong Moon vs. Nable Communications | Jeong Moon vs. KMH Hitech 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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