Correlation Between Jeju Beer and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Jeju Beer 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 Jeju Beer and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Beer Co and Shinhan Inverse Silver, you can compare the effects of market volatilities on Jeju Beer 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 Jeju Beer with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Beer and Shinhan Inverse.
Diversification Opportunities for Jeju Beer and Shinhan Inverse
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jeju and Shinhan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Beer Co and Shinhan Inverse Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Silver and Jeju Beer 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 Jeju Beer 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 Silver has no effect on the direction of Jeju Beer i.e., Jeju Beer and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Jeju Beer and Shinhan Inverse
Assuming the 90 days trading horizon Jeju Beer Co is expected to generate 1.9 times more return on investment than Shinhan Inverse. However, Jeju Beer is 1.9 times more volatile than Shinhan Inverse Silver. It trades about 0.13 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about 0.16 per unit of risk. If you would invest 297,000 in Jeju Beer Co on September 2, 2024 and sell it today you would earn a total of 28,000 from holding Jeju Beer Co or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Beer Co vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Jeju Beer |
| Shinhan Inverse Silver |
Jeju Beer and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Beer and Shinhan Inverse
The main advantage of trading using opposite Jeju Beer and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Beer 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.| Jeju Beer vs. AptaBio Therapeutics | Jeju Beer vs. Daewoo SBI SPAC | Jeju Beer vs. Dream Security co | Jeju Beer 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |