Correlation Between Ecoplastic and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Ecoplastic 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 Ecoplastic and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecoplastic and Shinhan Inverse Silver, you can compare the effects of market volatilities on Ecoplastic 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 Ecoplastic with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecoplastic and Shinhan Inverse.
Diversification Opportunities for Ecoplastic and Shinhan Inverse
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ecoplastic and Shinhan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ecoplastic 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 Ecoplastic 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 Ecoplastic 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 Ecoplastic i.e., Ecoplastic and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Ecoplastic and Shinhan Inverse
Assuming the 90 days trading horizon Ecoplastic is expected to generate 0.8 times more return on investment than Shinhan Inverse. However, Ecoplastic is 1.25 times less risky than Shinhan Inverse. It trades about -0.01 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.29 per unit of risk. If you would invest 241,000 in Ecoplastic on November 5, 2024 and sell it today you would lose (1,000.00) from holding Ecoplastic or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecoplastic vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Ecoplastic |
| Shinhan Inverse Silver |
Ecoplastic and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecoplastic and Shinhan Inverse
The main advantage of trading using opposite Ecoplastic and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecoplastic 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.| Ecoplastic vs. Iljin Display | Ecoplastic vs. PLAYWITH | Ecoplastic vs. ABOV Semiconductor Co | Ecoplastic vs. Sangsin Energy Display |
| Shinhan Inverse vs. PJ Metal Co | Shinhan Inverse vs. Nh Investment And | Shinhan Inverse vs. Pyung Hwa Industrial | Shinhan Inverse vs. Seoul Food Industrial |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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