Correlation Between Shinhan Inverse and Nable Communications
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Nable Communications 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 Nable Communications 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 Nable Communications, you can compare the effects of market volatilities on Shinhan Inverse and Nable Communications 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 Nable Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Nable Communications.
Diversification Opportunities for Shinhan Inverse and Nable Communications
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Nable is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Nable Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nable Communications 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 Nable Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nable Communications has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Nable Communications go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Nable Communications
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to under-perform the Nable Communications. In addition to that, Shinhan Inverse is 1.6 times more volatile than Nable Communications. It trades about -0.2 of its total potential returns per unit of risk. Nable Communications is currently generating about 0.18 per unit of volatility. If you would invest 633,000 in Nable Communications on November 8, 2024 and sell it today you would earn a total of 27,000 from holding Nable Communications or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Nable Communications
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Nable Communications |
Shinhan Inverse and Nable Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Nable Communications
The main advantage of trading using opposite Shinhan Inverse and Nable Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Nable Communications 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 Nable Communications will offset losses from the drop in Nable Communications' long position.| Shinhan Inverse vs. Lake Materials Co | Shinhan Inverse vs. Next Entertainment World | Shinhan Inverse vs. Ssangyong Materials Corp | Shinhan Inverse vs. Barunson Entertainment Arts |
| Nable Communications vs. Kaonmedia Co | Nable Communications vs. Polaris Office Corp | Nable Communications vs. PJ Metal Co | Nable Communications vs. Digital Multimedia Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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