Correlation Between GemVaxKAEL CoLtd and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and Shinhan Inverse WTI, you can compare the effects of market volatilities on GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and Shinhan Inverse.
Diversification Opportunities for GemVaxKAEL CoLtd and Shinhan Inverse
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GemVaxKAEL and Shinhan is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and Shinhan Inverse go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and Shinhan Inverse
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 2.27 times more return on investment than Shinhan Inverse. However, GemVaxKAEL CoLtd is 2.27 times more volatile than Shinhan Inverse WTI. It trades about 0.05 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about 0.02 per unit of risk. If you would invest 1,484,000 in GemVaxKAEL CoLtd on September 1, 2024 and sell it today you would earn a total of 466,000 from holding GemVaxKAEL CoLtd or generate 31.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.86% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. Shinhan Inverse WTI
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| Shinhan Inverse WTI |
GemVaxKAEL CoLtd and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and Shinhan Inverse
The main advantage of trading using opposite GemVaxKAEL CoLtd and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd 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.| GemVaxKAEL CoLtd vs. Dongsin Engineering Construction | GemVaxKAEL CoLtd vs. Doosan Fuel Cell | GemVaxKAEL CoLtd vs. Daishin Balance 1 | GemVaxKAEL CoLtd vs. Total Soft Bank |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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