Correlation Between Fine Besteel and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Fine Besteel 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 Fine Besteel and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and Shinhan Inverse WTI, you can compare the effects of market volatilities on Fine Besteel 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 Fine Besteel with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Shinhan Inverse.
Diversification Opportunities for Fine Besteel and Shinhan Inverse
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fine and Shinhan is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel 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 Fine Besteel 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 Fine Besteel 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 Fine Besteel i.e., Fine Besteel and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Fine Besteel and Shinhan Inverse
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 2.91 times more return on investment than Shinhan Inverse. However, Fine Besteel is 2.91 times more volatile than Shinhan Inverse WTI. It trades about 0.29 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about -0.04 per unit of risk. If you would invest 84,000 in Fine Besteel Co on August 29, 2024 and sell it today you would earn a total of 28,200 from holding Fine Besteel Co or generate 33.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Shinhan Inverse WTI
Performance |
| Timeline |
| Fine Besteel |
| Shinhan Inverse WTI |
Fine Besteel and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Shinhan Inverse
The main advantage of trading using opposite Fine Besteel and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel 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.| Fine Besteel vs. AptaBio Therapeutics | Fine Besteel vs. Daewoo SBI SPAC | Fine Besteel vs. Dream Security co | Fine Besteel vs. Microfriend |
| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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