Correlation Between Shinhan Inverse and Dawonsys CoLtd
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Dawonsys CoLtd 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 Dawonsys CoLtd 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 Dawonsys CoLtd, you can compare the effects of market volatilities on Shinhan Inverse and Dawonsys CoLtd 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 Dawonsys CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Dawonsys CoLtd.
Diversification Opportunities for Shinhan Inverse and Dawonsys CoLtd
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Dawonsys is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Dawonsys CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawonsys CoLtd 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 Dawonsys CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawonsys CoLtd has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Dawonsys CoLtd go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Dawonsys CoLtd
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to generate 0.63 times more return on investment than Dawonsys CoLtd. However, Shinhan Inverse Silver is 1.58 times less risky than Dawonsys CoLtd. It trades about 0.22 of its potential returns per unit of risk. Dawonsys CoLtd is currently generating about -0.08 per unit of risk. If you would invest 324,500 in Shinhan Inverse Silver on September 1, 2024 and sell it today you would earn a total of 31,000 from holding Shinhan Inverse Silver or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Dawonsys CoLtd
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Dawonsys CoLtd |
Shinhan Inverse and Dawonsys CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Dawonsys CoLtd
The main advantage of trading using opposite Shinhan Inverse and Dawonsys CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Dawonsys CoLtd 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 Dawonsys CoLtd will offset losses from the drop in Dawonsys CoLtd's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
| Dawonsys CoLtd vs. Hanwha InvestmentSecurities Co | Dawonsys CoLtd vs. Sungdo Engineering Construction | Dawonsys CoLtd vs. Daekyung Machinery Engineering | Dawonsys CoLtd vs. Shinhan Inverse Silver |
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 CEOs Directory module to screen CEOs from public companies around the world.
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