Correlation Between Shinhan Inverse and Solution Advanced
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Solution Advanced 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 Solution Advanced 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 Solution Advanced Technology, you can compare the effects of market volatilities on Shinhan Inverse and Solution Advanced 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 Solution Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Solution Advanced.
Diversification Opportunities for Shinhan Inverse and Solution Advanced
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinhan and Solution is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse WTI and Solution Advanced Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solution Advanced 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 Solution Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solution Advanced has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Solution Advanced go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Solution Advanced
Assuming the 90 days trading horizon Shinhan Inverse WTI is expected to generate 0.56 times more return on investment than Solution Advanced. However, Shinhan Inverse WTI is 1.79 times less risky than Solution Advanced. It trades about 0.0 of its potential returns per unit of risk. Solution Advanced Technology is currently generating about -0.03 per unit of risk. If you would invest 318,500 in Shinhan Inverse WTI on September 3, 2024 and sell it today you would lose (40,000) from holding Shinhan Inverse WTI or give up 12.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Shinhan Inverse WTI vs. Solution Advanced Technology
Performance |
| Timeline |
| Shinhan Inverse WTI |
| Solution Advanced |
Shinhan Inverse and Solution Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Solution Advanced
The main advantage of trading using opposite Shinhan Inverse and Solution Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Solution Advanced 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 Solution Advanced will offset losses from the drop in Solution Advanced's long position.| Shinhan Inverse vs. Kukdo Chemical Co | Shinhan Inverse vs. Korea Petro Chemical | Shinhan Inverse vs. LG Chemicals | Shinhan Inverse vs. Daehan Synthetic Fiber |
| Solution Advanced vs. LB Investment | Solution Advanced vs. Lindeman Asia Investment | Solution Advanced vs. FoodNamoo | Solution Advanced vs. Korea Investment Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |