Correlation Between Dongil Metal and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Dongil Metal 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 Dongil Metal and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Metal Co and Shinhan Inverse Silver, you can compare the effects of market volatilities on Dongil Metal 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 Dongil Metal with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Shinhan Inverse.
Diversification Opportunities for Dongil Metal and Shinhan Inverse
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongil and Shinhan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co 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 Dongil Metal 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 Dongil Metal Co 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 Dongil Metal i.e., Dongil Metal and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Dongil Metal and Shinhan Inverse
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 0.75 times more return on investment than Shinhan Inverse. However, Dongil Metal Co is 1.33 times less risky than Shinhan Inverse. It trades about -0.1 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.12 per unit of risk. If you would invest 844,000 in Dongil Metal Co on September 14, 2024 and sell it today you would lose (25,000) from holding Dongil Metal Co or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Dongil Metal |
| Shinhan Inverse Silver |
Dongil Metal and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Shinhan Inverse
The main advantage of trading using opposite Dongil Metal and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal 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.| Dongil Metal vs. LG Chemicals | Dongil Metal vs. POSCO Holdings | Dongil Metal vs. Hanwha Solutions | Dongil Metal vs. Lotte Chemical Corp |
| Shinhan Inverse vs. PJ Metal Co | Shinhan Inverse vs. Polaris Office Corp | Shinhan Inverse vs. Sempio Foods Co | Shinhan Inverse vs. Korea Alcohol Industrial |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |