Correlation Between Shinhan Inverse and Air Busan
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Air Busan 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 Air Busan 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 Air Busan Co, you can compare the effects of market volatilities on Shinhan Inverse and Air Busan 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 Air Busan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Air Busan.
Diversification Opportunities for Shinhan Inverse and Air Busan
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinhan and Air is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse WTI and Air Busan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Busan 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 Air Busan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Busan has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Air Busan go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Air Busan
Assuming the 90 days trading horizon Shinhan Inverse WTI is expected to generate 0.99 times more return on investment than Air Busan. However, Shinhan Inverse WTI is 1.02 times less risky than Air Busan. It trades about 0.1 of its potential returns per unit of risk. Air Busan Co is currently generating about 0.07 per unit of risk. If you would invest 256,500 in Shinhan Inverse WTI on November 9, 2024 and sell it today you would earn a total of 8,000 from holding Shinhan Inverse WTI or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse WTI vs. Air Busan Co
Performance |
| Timeline |
| Shinhan Inverse WTI |
| Air Busan |
Shinhan Inverse and Air Busan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Air Busan
The main advantage of trading using opposite Shinhan Inverse and Air Busan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Air Busan 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 Air Busan will offset losses from the drop in Air Busan's long position.| Shinhan Inverse vs. PJ Metal Co | Shinhan Inverse vs. Nable Communications | Shinhan Inverse vs. Korea Information Communications | Shinhan Inverse vs. Lotte Data Communication |
| Air Busan vs. Top Material Co | Air Busan vs. Wonil Special Steel | Air Busan vs. Han Kook Steel | Air Busan vs. Hana 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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