Correlation Between Shinhan Inverse and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Dongil Technology 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 Dongil Technology 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 Dongil Technology, you can compare the effects of market volatilities on Shinhan Inverse and Dongil Technology 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 Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Dongil Technology.
Diversification Opportunities for Shinhan Inverse and Dongil Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinhan and Dongil is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology 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 Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Dongil Technology go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Dongil Technology
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to generate 1.95 times more return on investment than Dongil Technology. However, Shinhan Inverse is 1.95 times more volatile than Dongil Technology. It trades about 0.26 of its potential returns per unit of risk. Dongil Technology is currently generating about -0.26 per unit of risk. If you would invest 323,500 in Shinhan Inverse Silver on August 30, 2024 and sell it today you would earn a total of 33,500 from holding Shinhan Inverse Silver or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Dongil Technology
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Dongil Technology |
Shinhan Inverse and Dongil Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Dongil Technology
The main advantage of trading using opposite Shinhan Inverse and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Dongil Technology 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 Dongil Technology will offset losses from the drop in Dongil Technology'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 |
| Dongil Technology vs. Hannong Chemicals | Dongil Technology vs. Korea Petro Chemical | Dongil Technology vs. Korean Drug Co | Dongil Technology vs. Kukdong Oil Chemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |