Correlation Between Shinhan Inverse and Automobile
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Automobile 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 Automobile 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 Automobile Pc, you can compare the effects of market volatilities on Shinhan Inverse and Automobile 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 Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Automobile.
Diversification Opportunities for Shinhan Inverse and Automobile
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Automobile is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Automobile Pc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automobile Pc 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 Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automobile Pc has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Automobile go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Automobile
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to generate 0.41 times more return on investment than Automobile. However, Shinhan Inverse Silver is 2.46 times less risky than Automobile. It trades about 0.27 of its potential returns per unit of risk. Automobile Pc is currently generating about 0.04 per unit of risk. If you would invest 325,500 in Shinhan Inverse Silver on August 29, 2024 and sell it today you would earn a total of 35,500 from holding Shinhan Inverse Silver or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Automobile Pc
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Automobile Pc |
Shinhan Inverse and Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Automobile
The main advantage of trading using opposite Shinhan Inverse and Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Automobile 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 Automobile will offset losses from the drop in Automobile's long position.| Shinhan Inverse vs. Samyung Trading Co | Shinhan Inverse vs. Genie Music | Shinhan Inverse vs. Sangsangin Investment Securities | Shinhan Inverse vs. SBI Investment KOREA |
| Automobile vs. Hanwha InvestmentSecurities Co | Automobile vs. Sangsin Energy Display | Automobile vs. Atinum Investment Co | Automobile vs. LB Investment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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