Correlation Between E Investment and Shinhan WTI
Can any of the company-specific risk be diversified away by investing in both E Investment and Shinhan WTI 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 E Investment and Shinhan WTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Shinhan WTI Futures, you can compare the effects of market volatilities on E Investment and Shinhan WTI 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 E Investment with a short position of Shinhan WTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Shinhan WTI.
Diversification Opportunities for E Investment and Shinhan WTI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Shinhan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Shinhan WTI Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan WTI Futures and E Investment 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 E Investment Development are associated (or correlated) with Shinhan WTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan WTI Futures has no effect on the direction of E Investment i.e., E Investment and Shinhan WTI go up and down completely randomly.
Pair Corralation between E Investment and Shinhan WTI
If you would invest 655,500 in Shinhan WTI Futures on September 3, 2024 and sell it today you would earn a total of 66,000 from holding Shinhan WTI Futures or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.32% |
| Values | Daily Returns |
E Investment Development vs. Shinhan WTI Futures
Performance |
| Timeline |
| E Investment Development |
| Shinhan WTI Futures |
E Investment and Shinhan WTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Shinhan WTI
The main advantage of trading using opposite E Investment and Shinhan WTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, Shinhan WTI 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 WTI will offset losses from the drop in Shinhan WTI's long position.| E Investment vs. Dongsin Engineering Construction | E Investment vs. Doosan Fuel Cell | E Investment vs. Daishin Balance 1 | E Investment vs. Total Soft Bank |
| Shinhan WTI vs. HB Technology TD | Shinhan WTI vs. Stic Investments | Shinhan WTI vs. Daol Investment Securities | Shinhan WTI vs. E Investment Development |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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