Correlation Between Shinhan Inverse and Tway Air
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Tway Air 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 Tway Air 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 Tway Air Co, you can compare the effects of market volatilities on Shinhan Inverse and Tway Air 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 Tway Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Tway Air.
Diversification Opportunities for Shinhan Inverse and Tway Air
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Tway is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse WTI and Tway Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tway Air 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 Tway Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tway Air has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Tway Air go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Tway Air
Assuming the 90 days trading horizon Shinhan Inverse WTI is expected to under-perform the Tway Air. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse WTI is 1.66 times less risky than Tway Air. The stock trades about -0.01 of its potential returns per unit of risk. The Tway Air Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 310,500 in Tway Air Co on November 1, 2024 and sell it today you would earn a total of 100,500 from holding Tway Air Co or generate 32.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Shinhan Inverse WTI vs. Tway Air Co
Performance |
| Timeline |
| Shinhan Inverse WTI |
| Tway Air |
Shinhan Inverse and Tway Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Tway Air
The main advantage of trading using opposite Shinhan Inverse and Tway Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Tway Air 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 Tway Air will offset losses from the drop in Tway Air's long position.| Shinhan Inverse vs. Samsung Electronics Co | Shinhan Inverse vs. UJU Electronics Co | Shinhan Inverse vs. TS Investment Corp | Shinhan Inverse vs. Coloray International Investment |
| Tway Air vs. FOODWELL Co | Tway Air vs. InnoTherapy | Tway Air vs. Netmarble Games Corp | Tway Air vs. Wireless Power Amplifier |
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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