Correlation Between Shinhan Inverse and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Shinhan Inverse and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Koryo Credit.
Diversification Opportunities for Shinhan Inverse and Koryo Credit
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Koryo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Koryo Credit go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Koryo Credit
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to generate 1.63 times more return on investment than Koryo Credit. However, Shinhan Inverse is 1.63 times more volatile than Koryo Credit Information. It trades about 0.16 of its potential returns per unit of risk. Koryo Credit Information is currently generating about 0.17 per unit of risk. If you would invest 334,000 in Shinhan Inverse Silver on September 2, 2024 and sell it today you would earn a total of 21,500 from holding Shinhan Inverse Silver or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Koryo Credit Information
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Koryo Credit Information |
Shinhan Inverse and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Koryo Credit
The main advantage of trading using opposite Shinhan Inverse and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
| Koryo Credit vs. Lotte Energy Materials | Koryo Credit vs. Lotte Data Communication | Koryo Credit vs. Nable Communications | Koryo Credit 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |