Correlation Between Shinhan Inverse and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Hankukpackage 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 Shinhan Inverse and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Inverse WTI and Hankukpackage Co, you can compare the effects of market volatilities on Shinhan Inverse and Hankukpackage 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 Shinhan Inverse with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Hankukpackage.
Diversification Opportunities for Shinhan Inverse and Hankukpackage
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinhan and Hankukpackage is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse WTI and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and Shinhan Inverse 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 Shinhan Inverse WTI are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Hankukpackage go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Hankukpackage
Assuming the 90 days trading horizon Shinhan Inverse WTI is expected to under-perform the Hankukpackage. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse WTI is 1.78 times less risky than Hankukpackage. The stock trades about -0.17 of its potential returns per unit of risk. The Hankukpackage Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 179,976 in Hankukpackage Co on October 30, 2024 and sell it today you would lose (7,976) from holding Hankukpackage Co or give up 4.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse WTI vs. Hankukpackage Co
Performance |
| Timeline |
| Shinhan Inverse WTI |
| Hankukpackage |
Shinhan Inverse and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Hankukpackage
The main advantage of trading using opposite Shinhan Inverse and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Shinhan Inverse vs. Dongbang Ship Machinery | Shinhan Inverse vs. Samick Musical Instruments | Shinhan Inverse vs. Aprogen Healthcare Games | Shinhan Inverse vs. Kyeryong Construction Industrial |
| Hankukpackage vs. SeAH Besteel Corp | Hankukpackage vs. Hyundai Engineering Plastics | Hankukpackage vs. Daehan Steel | Hankukpackage vs. Daejoo Electronic Materials |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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