Correlation Between Inzi Display and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Inzi Display 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 Inzi Display and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and Shinhan Inverse Silver, you can compare the effects of market volatilities on Inzi Display 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 Inzi Display with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Shinhan Inverse.
Diversification Opportunities for Inzi Display and Shinhan Inverse
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inzi and Shinhan is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd 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 Inzi Display 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 Inzi Display CoLtd 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 Inzi Display i.e., Inzi Display and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Inzi Display and Shinhan Inverse
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the Shinhan Inverse. But the stock apears to be less risky and, when comparing its historical volatility, Inzi Display CoLtd is 1.37 times less risky than Shinhan Inverse. The stock trades about -0.31 of its potential returns per unit of risk. The Shinhan Inverse Silver is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 334,000 in Shinhan Inverse Silver on September 2, 2024 and sell it today you would earn a total of 21,500 from holding Shinhan Inverse Silver or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Inzi Display CoLtd |
| Shinhan Inverse Silver |
Inzi Display and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Shinhan Inverse
The main advantage of trading using opposite Inzi Display and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display 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.| Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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