Correlation Between Shin Steel and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Shin Steel and Pureun Mutual 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 Shin Steel and Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Steel Co and Pureun Mutual Savings, you can compare the effects of market volatilities on Shin Steel and Pureun Mutual 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 Shin Steel with a short position of Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Steel and Pureun Mutual.
Diversification Opportunities for Shin Steel and Pureun Mutual
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shin and Pureun is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shin Steel Co and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings and Shin Steel 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 Shin Steel Co are associated (or correlated) with Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Shin Steel i.e., Shin Steel and Pureun Mutual go up and down completely randomly.
Pair Corralation between Shin Steel and Pureun Mutual
Assuming the 90 days trading horizon Shin Steel Co is expected to under-perform the Pureun Mutual. In addition to that, Shin Steel is 5.19 times more volatile than Pureun Mutual Savings. It trades about -0.28 of its total potential returns per unit of risk. Pureun Mutual Savings is currently generating about -0.51 per unit of volatility. If you would invest 848,000 in Pureun Mutual Savings on November 6, 2024 and sell it today you would lose (31,000) from holding Pureun Mutual Savings or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Steel Co vs. Pureun Mutual Savings
Performance |
| Timeline |
| Shin Steel |
| Pureun Mutual Savings |
Shin Steel and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Steel and Pureun Mutual
The main advantage of trading using opposite Shin Steel and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Steel position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| Shin Steel vs. Samyoung Electronics Co | Shin Steel vs. Daiyang Metal Co | Shin Steel vs. Daejoo Electronic Materials | Shin Steel vs. SungMoon Electronics Co |
| Pureun Mutual vs. Alton Sports CoLtd | Pureun Mutual vs. Tuksu Engineering ConstructionLtd | Pureun Mutual vs. Digital Power Communications | Pureun Mutual vs. LG Display Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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