Correlation Between GiantStep and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both GiantStep 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 GiantStep and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GiantStep Co and Shinhan Inverse Silver, you can compare the effects of market volatilities on GiantStep 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 GiantStep with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of GiantStep and Shinhan Inverse.
Diversification Opportunities for GiantStep and Shinhan Inverse
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GiantStep and Shinhan is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding GiantStep 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 GiantStep 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 GiantStep 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 GiantStep i.e., GiantStep and Shinhan Inverse go up and down completely randomly.
Pair Corralation between GiantStep and Shinhan Inverse
Assuming the 90 days trading horizon GiantStep Co is expected to generate 2.31 times more return on investment than Shinhan Inverse. However, GiantStep is 2.31 times more volatile than Shinhan Inverse Silver. It trades about -0.01 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.3 per unit of risk. If you would invest 608,000 in GiantStep Co on November 3, 2024 and sell it today you would lose (13,000) from holding GiantStep Co or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GiantStep Co vs. Shinhan Inverse Silver
Performance |
| Timeline |
| GiantStep |
| Shinhan Inverse Silver |
GiantStep and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GiantStep and Shinhan Inverse
The main advantage of trading using opposite GiantStep and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GiantStep 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.| GiantStep vs. Dongil Metal Co | GiantStep vs. DB Financial Investment | GiantStep vs. SV Investment | GiantStep vs. Daesung Industrial Co |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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