Correlation Between Korea New and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Korea New 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 Korea New and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and Shinhan Inverse WTI, you can compare the effects of market volatilities on Korea New 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 Korea New with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and Shinhan Inverse.
Diversification Opportunities for Korea New and Shinhan Inverse
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Shinhan is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network 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 Korea New 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 Korea New Network 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 Korea New i.e., Korea New and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Korea New and Shinhan Inverse
Assuming the 90 days trading horizon Korea New Network is expected to generate 1.28 times more return on investment than Shinhan Inverse. However, Korea New is 1.28 times more volatile than Shinhan Inverse WTI. It trades about -0.01 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about -0.01 per unit of risk. If you would invest 90,863 in Korea New Network on August 27, 2024 and sell it today you would lose (12,163) from holding Korea New Network or give up 13.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.45% |
| Values | Daily Returns |
Korea New Network vs. Shinhan Inverse WTI
Performance |
| Timeline |
| Korea New Network |
| Shinhan Inverse WTI |
Korea New and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea New and Shinhan Inverse
The main advantage of trading using opposite Korea New and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New 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.| Korea New vs. Samsung Electronics Co | Korea New vs. Samsung Electronics Co | Korea New vs. LG Energy Solution | Korea New vs. SK Hynix |
| Shinhan Inverse vs. Cuckoo Electronics Co | Shinhan Inverse vs. Daejoo Electronic Materials | Shinhan Inverse vs. BNK Financial Group | Shinhan Inverse vs. Dgb Financial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |