Correlation Between Daewon Media and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Daewon Media 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 Daewon Media and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewon Media Co and Shinhan Inverse Silver, you can compare the effects of market volatilities on Daewon Media 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 Daewon Media with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewon Media and Shinhan Inverse.
Diversification Opportunities for Daewon Media and Shinhan Inverse
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daewon and Shinhan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Daewon Media Co 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 Daewon Media 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 Daewon Media 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 Silver has no effect on the direction of Daewon Media i.e., Daewon Media and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Daewon Media and Shinhan Inverse
Assuming the 90 days trading horizon Daewon Media Co is expected to under-perform the Shinhan Inverse. But the stock apears to be less risky and, when comparing its historical volatility, Daewon Media Co is 1.28 times less risky than Shinhan Inverse. The stock trades about -0.15 of its potential returns per unit of risk. The Shinhan Inverse Silver is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 347,500 in Shinhan Inverse Silver on September 13, 2024 and sell it today you would lose (7,500) from holding Shinhan Inverse Silver or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Daewon Media Co vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Daewon Media |
| Shinhan Inverse Silver |
Daewon Media and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewon Media and Shinhan Inverse
The main advantage of trading using opposite Daewon Media and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewon Media 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.| Daewon Media vs. YG Entertainment | Daewon Media vs. JYP Entertainment | Daewon Media vs. Cube Entertainment | Daewon Media vs. FNC Entertainment Co |
| Shinhan Inverse vs. Koryo Credit Information | Shinhan Inverse vs. Daou Data Corp | Shinhan Inverse vs. SCI Information Service | Shinhan Inverse vs. Hansol Homedeco Co |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |