Correlation Between Shinhan Inverse and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and PJ Metal 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 PJ Metal 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 PJ Metal Co, you can compare the effects of market volatilities on Shinhan Inverse and PJ Metal 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 PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and PJ Metal.
Diversification Opportunities for Shinhan Inverse and PJ Metal
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and 128660 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ 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 PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and PJ Metal go up and down completely randomly.
Pair Corralation between Shinhan Inverse and PJ Metal
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to under-perform the PJ Metal. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse Silver is 1.67 times less risky than PJ Metal. The stock trades about -0.12 of its potential returns per unit of risk. The PJ Metal Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 299,500 in PJ Metal Co on September 14, 2024 and sell it today you would earn a total of 0.00 from holding PJ Metal Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. PJ Metal Co
Performance |
| Timeline |
| Shinhan Inverse Silver |
| PJ Metal |
Shinhan Inverse and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and PJ Metal
The main advantage of trading using opposite Shinhan Inverse and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, PJ Metal 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 PJ Metal will offset losses from the drop in PJ Metal's long position.| Shinhan Inverse vs. PJ Metal Co | Shinhan Inverse vs. Polaris Office Corp | Shinhan Inverse vs. Sempio Foods Co | Shinhan Inverse vs. Korea Alcohol Industrial |
| PJ Metal vs. Miwon Chemicals Co | PJ Metal vs. Seoam Machinery Industry | PJ Metal vs. Dongbang Ship Machinery | PJ Metal vs. Mirai Semiconductors 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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