Correlation Between Shinhan Inverse and Hanwha InvestmentSecuri
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Inverse Silver and Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on Shinhan Inverse and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Hanwha InvestmentSecuri.
Diversification Opportunities for Shinhan Inverse and Hanwha InvestmentSecuri
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Hanwha is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri 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 Silver are associated (or correlated) with Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Hanwha InvestmentSecuri go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Hanwha InvestmentSecuri
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to under-perform the Hanwha InvestmentSecuri. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse Silver is 2.22 times less risky than Hanwha InvestmentSecuri. The stock trades about -0.06 of its potential returns per unit of risk. The Hanwha InvestmentSecurities Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 641,000 in Hanwha InvestmentSecurities Co on September 3, 2024 and sell it today you would earn a total of 71,000 from holding Hanwha InvestmentSecurities Co or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.61% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Hanwha InvestmentSecurities Co
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Hanwha InvestmentSecuri |
Shinhan Inverse and Hanwha InvestmentSecuri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Hanwha InvestmentSecuri
The main advantage of trading using opposite Shinhan Inverse and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri's long position.| Shinhan Inverse vs. Seah Steel Corp | Shinhan Inverse vs. Clean Science co | Shinhan Inverse vs. Netmarble Games Corp | Shinhan Inverse vs. Dongbu Steel Co |
| Hanwha InvestmentSecuri vs. Nh Investment And | Hanwha InvestmentSecuri vs. Samsung Special Purpose | Hanwha InvestmentSecuri vs. YeSUN Tech CoLtd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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