Correlation Between Namu Tech and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Namu Tech 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 Namu Tech and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namu Tech CoLtd and Shinhan Inverse Copper, you can compare the effects of market volatilities on Namu Tech 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 Namu Tech with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namu Tech and Shinhan Inverse.
Diversification Opportunities for Namu Tech and Shinhan Inverse
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Namu and Shinhan is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Namu Tech CoLtd 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 Namu Tech 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 Namu Tech CoLtd 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 Namu Tech i.e., Namu Tech and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Namu Tech and Shinhan Inverse
Assuming the 90 days trading horizon Namu Tech CoLtd is expected to under-perform the Shinhan Inverse. In addition to that, Namu Tech is 4.67 times more volatile than Shinhan Inverse Copper. It trades about -0.03 of its total potential returns per unit of risk. Shinhan Inverse Copper is currently generating about 0.09 per unit of volatility. If you would invest 563,000 in Shinhan Inverse Copper on September 25, 2024 and sell it today you would earn a total of 7,500 from holding Shinhan Inverse Copper or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Namu Tech CoLtd vs. Shinhan Inverse Copper
Performance |
| Timeline |
| Namu Tech CoLtd |
| Shinhan Inverse Copper |
Namu Tech and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namu Tech and Shinhan Inverse
The main advantage of trading using opposite Namu Tech and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namu Tech 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.| Namu Tech vs. Shinhan Inverse Copper | Namu Tech vs. EBEST Investment Securities | Namu Tech vs. Kbi Metal Co | Namu Tech vs. Korea Investment Holdings |
| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Wonbang Tech Co | Shinhan Inverse vs. Busan Industrial Co | Shinhan Inverse vs. Busan Ind |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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