Correlation Between Hanwha Life and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Hanwha Life 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 Hanwha Life and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanwha Life Insurance and Shinhan Inverse WTI, you can compare the effects of market volatilities on Hanwha Life 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 Hanwha Life with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha Life and Shinhan Inverse.
Diversification Opportunities for Hanwha Life and Shinhan Inverse
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanwha and Shinhan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha Life Insurance 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 Hanwha Life 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 Hanwha Life Insurance 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 Hanwha Life i.e., Hanwha Life and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Hanwha Life and Shinhan Inverse
Assuming the 90 days trading horizon Hanwha Life Insurance is expected to generate 0.44 times more return on investment than Shinhan Inverse. However, Hanwha Life Insurance is 2.28 times less risky than Shinhan Inverse. It trades about 0.15 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about -0.11 per unit of risk. If you would invest 244,500 in Hanwha Life Insurance on November 3, 2024 and sell it today you would earn a total of 5,000 from holding Hanwha Life Insurance or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanwha Life Insurance vs. Shinhan Inverse WTI
Performance |
| Timeline |
| Hanwha Life Insurance |
| Shinhan Inverse WTI |
Hanwha Life and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha Life and Shinhan Inverse
The main advantage of trading using opposite Hanwha Life and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha Life 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.| Hanwha Life vs. AptaBio Therapeutics | Hanwha Life vs. Daewoo SBI SPAC | Hanwha Life vs. Dream Security co | Hanwha Life vs. Microfriend |
| Shinhan Inverse vs. Golden Bridge Investment | Shinhan Inverse vs. Daesung Industrial Co | Shinhan Inverse vs. Seoul Food Industrial | Shinhan Inverse vs. Cloud Air CoLtd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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