Correlation Between HJ ShipBuilding and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both HJ ShipBuilding 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 HJ ShipBuilding and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HJ ShipBuilding Construction and Shinhan Inverse Copper, you can compare the effects of market volatilities on HJ ShipBuilding 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 HJ ShipBuilding with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of HJ ShipBuilding and Shinhan Inverse.
Diversification Opportunities for HJ ShipBuilding and Shinhan Inverse
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 097230 and Shinhan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HJ ShipBuilding Construction and Shinhan Inverse Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Copper and HJ ShipBuilding 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 HJ ShipBuilding Construction 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 Copper has no effect on the direction of HJ ShipBuilding i.e., HJ ShipBuilding and Shinhan Inverse go up and down completely randomly.
Pair Corralation between HJ ShipBuilding and Shinhan Inverse
Assuming the 90 days trading horizon HJ ShipBuilding Construction is expected to generate 2.21 times more return on investment than Shinhan Inverse. However, HJ ShipBuilding is 2.21 times more volatile than Shinhan Inverse Copper. It trades about 0.02 of its potential returns per unit of risk. Shinhan Inverse Copper is currently generating about 0.0 per unit of risk. If you would invest 412,000 in HJ ShipBuilding Construction on September 5, 2024 and sell it today you would earn a total of 23,000 from holding HJ ShipBuilding Construction or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.86% |
| Values | Daily Returns |
HJ ShipBuilding Construction vs. Shinhan Inverse Copper
Performance |
| Timeline |
| HJ ShipBuilding Cons |
| Shinhan Inverse Copper |
HJ ShipBuilding and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HJ ShipBuilding and Shinhan Inverse
The main advantage of trading using opposite HJ ShipBuilding and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HJ ShipBuilding 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.| HJ ShipBuilding vs. Okins Electronics Co | HJ ShipBuilding vs. ABCO Electronics Co | HJ ShipBuilding vs. Sunny Electronics Corp | HJ ShipBuilding vs. Sungmoon Electronics Co |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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