Correlation Between Chorokbaem Healthcare and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare 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 Chorokbaem Healthcare and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chorokbaem Healthcare Co and Shinhan Inverse WTI, you can compare the effects of market volatilities on Chorokbaem Healthcare 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 Chorokbaem Healthcare with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and Shinhan Inverse.
Diversification Opportunities for Chorokbaem Healthcare and Shinhan Inverse
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chorokbaem and Shinhan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare Co 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 Chorokbaem Healthcare 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 Chorokbaem Healthcare 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 WTI has no effect on the direction of Chorokbaem Healthcare i.e., Chorokbaem Healthcare and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and Shinhan Inverse
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to under-perform the Shinhan Inverse. In addition to that, Chorokbaem Healthcare is 1.47 times more volatile than Shinhan Inverse WTI. It trades about -0.47 of its total potential returns per unit of risk. Shinhan Inverse WTI is currently generating about 0.04 per unit of volatility. If you would invest 276,000 in Shinhan Inverse WTI on September 12, 2024 and sell it today you would earn a total of 3,000 from holding Shinhan Inverse WTI or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. Shinhan Inverse WTI
Performance |
| Timeline |
| Chorokbaem Healthcare |
| Shinhan Inverse WTI |
Chorokbaem Healthcare and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and Shinhan Inverse
The main advantage of trading using opposite Chorokbaem Healthcare and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare 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.| Chorokbaem Healthcare vs. Samsung Electronics Co | Chorokbaem Healthcare vs. Samsung Electronics Co | Chorokbaem Healthcare vs. SK Hynix | Chorokbaem Healthcare vs. SK Holdings Co |
| Shinhan Inverse vs. Samsung Electronics Co | Shinhan Inverse vs. Samsung Electronics Co | Shinhan Inverse vs. SK Hynix | Shinhan Inverse vs. POSCO Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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