Correlation Between Innometry and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Innometry 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 Innometry and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and Shinhan Inverse Silver, you can compare the effects of market volatilities on Innometry 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 Innometry with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and Shinhan Inverse.
Diversification Opportunities for Innometry and Shinhan Inverse
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innometry and Shinhan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Innometry 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 Innometry 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 Innometry 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 Innometry i.e., Innometry and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Innometry and Shinhan Inverse
Assuming the 90 days trading horizon Innometry Co is expected to generate 1.14 times more return on investment than Shinhan Inverse. However, Innometry is 1.14 times more volatile than Shinhan Inverse Silver. It trades about 0.05 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.22 per unit of risk. If you would invest 743,000 in Innometry Co on October 21, 2024 and sell it today you would earn a total of 10,000 from holding Innometry Co or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Innometry |
| Shinhan Inverse Silver |
Innometry and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and Shinhan Inverse
The main advantage of trading using opposite Innometry and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry 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.| Innometry vs. Samsung Publishing Co | Innometry vs. V One Tech Co | Innometry vs. Spolytech Co | Innometry vs. Hwangkum Steel Technology |
| Shinhan Inverse vs. Hanjin Transportation Co | Shinhan Inverse vs. Korea Shipbuilding Offshore | Shinhan Inverse vs. Eagon Industrial Co | Shinhan Inverse vs. Hwasung Industrial Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |