Correlation Between Daishin Balance and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Daishin Balance 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 Daishin Balance and Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Balance No8 and Shinhan Inverse WTI, you can compare the effects of market volatilities on Daishin Balance 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 Daishin Balance with a short position of Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Balance and Shinhan Inverse.
Diversification Opportunities for Daishin Balance and Shinhan Inverse
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daishin and Shinhan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Balance No8 and Shinhan Inverse WTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse WTI and Daishin Balance 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 Daishin Balance No8 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 WTI has no effect on the direction of Daishin Balance i.e., Daishin Balance and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Daishin Balance and Shinhan Inverse
Assuming the 90 days trading horizon Daishin Balance No8 is expected to under-perform the Shinhan Inverse. In addition to that, Daishin Balance is 1.72 times more volatile than Shinhan Inverse WTI. It trades about -0.13 of its total potential returns per unit of risk. Shinhan Inverse WTI is currently generating about 0.03 per unit of volatility. If you would invest 269,500 in Shinhan Inverse WTI on August 24, 2024 and sell it today you would earn a total of 10,000 from holding Shinhan Inverse WTI or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.35% |
| Values | Daily Returns |
Daishin Balance No8 vs. Shinhan Inverse WTI
Performance |
| Timeline |
| Daishin Balance No8 |
| Shinhan Inverse WTI |
Daishin Balance and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Balance and Shinhan Inverse
The main advantage of trading using opposite Daishin Balance and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Balance 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.| Daishin Balance vs. Shinil Electronics Co | Daishin Balance vs. Daejoo Electronic Materials | Daishin Balance vs. Okins Electronics Co | Daishin Balance vs. DONGKUK TED METAL |
| Shinhan Inverse vs. Sam Yang Foods | Shinhan Inverse vs. Lion Chemtech Co | Shinhan Inverse vs. Intellian Technologies | Shinhan Inverse vs. FoodNamoo |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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