Correlation Between Shinhan Inverse and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Shinhan Inverse and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Duksan Hi.
Diversification Opportunities for Shinhan Inverse and Duksan Hi
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Duksan is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Duksan Hi go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Duksan Hi
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse Silver is 1.8 times less risky than Duksan Hi. The stock trades about -0.04 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 586,000 in Duksan Hi Metal on November 1, 2024 and sell it today you would lose (182,500) from holding Duksan Hi Metal or give up 31.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.48% |
Values | Daily Returns |
Shinhan Inverse Silver vs. Duksan Hi Metal
Performance |
Timeline |
Shinhan Inverse Silver |
Duksan Hi Metal |
Shinhan Inverse and Duksan Hi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinhan Inverse and Duksan Hi
The main advantage of trading using opposite Shinhan Inverse and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.Shinhan Inverse vs. GS Retail Co | Shinhan Inverse vs. Jeong Moon Information | Shinhan Inverse vs. ABOV Semiconductor Co | Shinhan Inverse vs. PLAYWITH |
Duksan Hi vs. Samsung Electronics Co | Duksan Hi vs. Samsung Electronics Co | Duksan Hi vs. SK Hynix | Duksan Hi vs. HMM Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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