Correlation Between EO Technics and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both EO Technics 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 EO Technics and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EO Technics Co and Shinhan Inverse WTI, you can compare the effects of market volatilities on EO Technics 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 EO Technics with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of EO Technics and Shinhan Inverse.
Diversification Opportunities for EO Technics and Shinhan Inverse
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 039030 and Shinhan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding EO Technics Co 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 EO Technics 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 EO Technics Co 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 EO Technics i.e., EO Technics and Shinhan Inverse go up and down completely randomly.
Pair Corralation between EO Technics and Shinhan Inverse
Assuming the 90 days trading horizon EO Technics Co is expected to under-perform the Shinhan Inverse. In addition to that, EO Technics is 2.69 times more volatile than Shinhan Inverse WTI. It trades about -0.27 of its total potential returns per unit of risk. Shinhan Inverse WTI is currently generating about -0.04 per unit of volatility. If you would invest 283,000 in Shinhan Inverse WTI on August 29, 2024 and sell it today you would lose (4,500) from holding Shinhan Inverse WTI or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EO Technics Co vs. Shinhan Inverse WTI
Performance |
| Timeline |
| EO Technics |
| Shinhan Inverse WTI |
EO Technics and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EO Technics and Shinhan Inverse
The main advantage of trading using opposite EO Technics and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EO Technics 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.| EO Technics vs. Daou Data Corp | EO Technics vs. Busan Industrial Co | EO Technics vs. Busan Ind | EO Technics vs. Shinhan WTI Futures |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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