Correlation Between Shinhan Inverse and HyVision System
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and HyVision System 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 HyVision System 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 HyVision System, you can compare the effects of market volatilities on Shinhan Inverse and HyVision System 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 HyVision System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and HyVision System.
Diversification Opportunities for Shinhan Inverse and HyVision System
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and HyVision is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse WTI and HyVision System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyVision System 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 HyVision System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyVision System has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and HyVision System go up and down completely randomly.
Pair Corralation between Shinhan Inverse and HyVision System
Assuming the 90 days trading horizon Shinhan Inverse WTI is expected to under-perform the HyVision System. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse WTI is 1.66 times less risky than HyVision System. The stock trades about -0.01 of its potential returns per unit of risk. The HyVision System is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,613,047 in HyVision System on December 4, 2024 and sell it today you would earn a total of 211,953 from holding HyVision System or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shinhan Inverse WTI vs. HyVision System
Performance |
| Timeline |
| Shinhan Inverse WTI |
| HyVision System |
Shinhan Inverse and HyVision System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and HyVision System
The main advantage of trading using opposite Shinhan Inverse and HyVision System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, HyVision System 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 HyVision System will offset losses from the drop in HyVision System's long position.| Shinhan Inverse vs. Busan Industrial Co | Shinhan Inverse vs. PJ Metal Co | Shinhan Inverse vs. Industrial Bank | Shinhan Inverse vs. Seohee Construction Co |
| HyVision System vs. InnoTherapy | HyVision System vs. KakaoBank Corp | HyVision System vs. Lotte Non Life Insurance | HyVision System vs. MetaLabs 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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