Correlation Between Shin Steel and Aniplus
Can any of the company-specific risk be diversified away by investing in both Shin Steel and Aniplus 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 Aniplus 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 Aniplus, you can compare the effects of market volatilities on Shin Steel and Aniplus 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 Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Steel and Aniplus.
Diversification Opportunities for Shin Steel and Aniplus
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shin and Aniplus is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shin Steel Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus 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 Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of Shin Steel i.e., Shin Steel and Aniplus go up and down completely randomly.
Pair Corralation between Shin Steel and Aniplus
Assuming the 90 days trading horizon Shin Steel Co is expected to generate 1.57 times more return on investment than Aniplus. However, Shin Steel is 1.57 times more volatile than Aniplus. It trades about -0.01 of its potential returns per unit of risk. Aniplus is currently generating about -0.01 per unit of risk. If you would invest 463,485 in Shin Steel Co on September 4, 2024 and sell it today you would lose (220,485) from holding Shin Steel Co or give up 47.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.55% |
| Values | Daily Returns |
Shin Steel Co vs. Aniplus
Performance |
| Timeline |
| Shin Steel |
| Aniplus |
Shin Steel and Aniplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Steel and Aniplus
The main advantage of trading using opposite Shin Steel and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Steel position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.| Shin Steel vs. Samsung Electronics Co | Shin Steel vs. Samsung Electronics Co | Shin Steel vs. LG Energy Solution | Shin Steel vs. SK Hynix |
| Aniplus vs. Lotte Data Communication | Aniplus vs. Ssangyong Information Communication | Aniplus vs. Hankuk Steel Wire | Aniplus vs. Shin Steel 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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