Correlation Between MediaZen and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both MediaZen 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 MediaZen and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaZen and Shinhan Inverse Copper, you can compare the effects of market volatilities on MediaZen 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 MediaZen with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaZen and Shinhan Inverse.
Diversification Opportunities for MediaZen and Shinhan Inverse
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MediaZen and Shinhan is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MediaZen 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 MediaZen 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 MediaZen 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 MediaZen i.e., MediaZen and Shinhan Inverse go up and down completely randomly.
Pair Corralation between MediaZen and Shinhan Inverse
Assuming the 90 days trading horizon MediaZen is not expected to generate positive returns. Moreover, MediaZen is 2.36 times more volatile than Shinhan Inverse Copper. It trades away all of its potential returns to assume current level of volatility. Shinhan Inverse Copper is currently generating about -0.02 per unit of risk. If you would invest 1,269,000 in MediaZen on September 2, 2024 and sell it today you would lose (139,000) from holding MediaZen or give up 10.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.98% |
| Values | Daily Returns |
MediaZen vs. Shinhan Inverse Copper
Performance |
| Timeline |
| MediaZen |
| Shinhan Inverse Copper |
MediaZen and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaZen and Shinhan Inverse
The main advantage of trading using opposite MediaZen and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaZen 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.| MediaZen vs. Samsung Electronics Co | MediaZen vs. Samsung Electronics Co | MediaZen vs. LG Energy Solution | MediaZen vs. SK Hynix |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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