Correlation Between Daewoo SBI and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Daewoo SBI 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 Daewoo SBI and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewoo SBI SPAC and Shinhan Inverse Copper, you can compare the effects of market volatilities on Daewoo SBI 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 Daewoo SBI with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewoo SBI and Shinhan Inverse.
Diversification Opportunities for Daewoo SBI and Shinhan Inverse
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daewoo and Shinhan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Daewoo SBI SPAC and Shinhan Inverse Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Copper and Daewoo SBI 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 Daewoo SBI SPAC 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 Copper has no effect on the direction of Daewoo SBI i.e., Daewoo SBI and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Daewoo SBI and Shinhan Inverse
Assuming the 90 days trading horizon Daewoo SBI SPAC is expected to under-perform the Shinhan Inverse. In addition to that, Daewoo SBI is 1.27 times more volatile than Shinhan Inverse Copper. It trades about -0.3 of its total potential returns per unit of risk. Shinhan Inverse Copper is currently generating about 0.22 per unit of volatility. If you would invest 532,000 in Shinhan Inverse Copper on September 1, 2024 and sell it today you would earn a total of 33,000 from holding Shinhan Inverse Copper or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Daewoo SBI SPAC vs. Shinhan Inverse Copper
Performance |
| Timeline |
| Daewoo SBI SPAC |
| Shinhan Inverse Copper |
Daewoo SBI and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewoo SBI and Shinhan Inverse
The main advantage of trading using opposite Daewoo SBI and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewoo SBI 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.| Daewoo SBI vs. Choil Aluminum | Daewoo SBI vs. Cube Entertainment | Daewoo SBI vs. Kbi Metal Co | Daewoo SBI vs. Asiana Airlines |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |