Correlation Between Chin Yang and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Chin Yang 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 Chin Yang and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chin Yang Chemical and Shinhan Inverse Silver, you can compare the effects of market volatilities on Chin Yang 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 Chin Yang with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chin Yang and Shinhan Inverse.
Diversification Opportunities for Chin Yang and Shinhan Inverse
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chin and Shinhan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chin Yang Chemical 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 Chin Yang 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 Chin Yang Chemical 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 Chin Yang i.e., Chin Yang and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Chin Yang and Shinhan Inverse
Assuming the 90 days trading horizon Chin Yang Chemical is expected to generate 0.96 times more return on investment than Shinhan Inverse. However, Chin Yang Chemical is 1.04 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 -0.04 per unit of risk. If you would invest 292,489 in Chin Yang Chemical on August 25, 2024 and sell it today you would lose (27,989) from holding Chin Yang Chemical or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.76% |
| Values | Daily Returns |
Chin Yang Chemical vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Chin Yang Chemical |
| Shinhan Inverse Silver |
Chin Yang and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chin Yang and Shinhan Inverse
The main advantage of trading using opposite Chin Yang and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chin Yang 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.| Chin Yang vs. AptaBio Therapeutics | Chin Yang vs. Daewoo SBI SPAC | Chin Yang vs. Dream Security co | Chin Yang vs. Microfriend |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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