Correlation Between Global Standard and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Global Standard 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 Global Standard and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Standard Technology and Shinhan Inverse Silver, you can compare the effects of market volatilities on Global Standard 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 Global Standard with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Standard and Shinhan Inverse.
Diversification Opportunities for Global Standard and Shinhan Inverse
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Shinhan is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Global Standard Technology 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 Global Standard 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 Global Standard Technology 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 Global Standard i.e., Global Standard and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Global Standard and Shinhan Inverse
If you would invest 1,130,926 in Global Standard Technology on November 8, 2024 and sell it today you would earn a total of 587,074 from holding Global Standard Technology or generate 51.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global Standard Technology vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Global Standard Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Shinhan Inverse Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Standard and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Standard and Shinhan Inverse
The main advantage of trading using opposite Global Standard and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Standard 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.| Global Standard vs. Ssangyong Materials Corp | Global Standard vs. Tuksu Engineering ConstructionLtd | Global Standard vs. EV Advanced Material | Global Standard vs. WONIK Materials CoLtd |
| Shinhan Inverse vs. Lake Materials Co | Shinhan Inverse vs. Next Entertainment World | Shinhan Inverse vs. Ssangyong Materials Corp | Shinhan Inverse vs. Barunson Entertainment Arts |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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