Correlation Between Shinhan Inverse and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and ABOV Semiconductor 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 ABOV Semiconductor 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 ABOV Semiconductor Co, you can compare the effects of market volatilities on Shinhan Inverse and ABOV Semiconductor 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and ABOV Semiconductor.
Diversification Opportunities for Shinhan Inverse and ABOV Semiconductor
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinhan and ABOV is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between Shinhan Inverse and ABOV Semiconductor
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to generate 0.7 times more return on investment than ABOV Semiconductor. However, Shinhan Inverse Silver is 1.44 times less risky than ABOV Semiconductor. It trades about 0.22 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about -0.36 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. ABOV Semiconductor Co
Performance |
| Timeline |
| Shinhan Inverse Silver |
| ABOV Semiconductor |
Shinhan Inverse and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and ABOV Semiconductor
The main advantage of trading using opposite Shinhan Inverse and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
| ABOV Semiconductor vs. Dongsin Engineering Construction | ABOV Semiconductor vs. Doosan Fuel Cell | ABOV Semiconductor vs. Daishin Balance 1 | ABOV Semiconductor vs. Total Soft Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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