Correlation Between Shinhan Inverse and Incar Financial
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Incar Financial 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 Incar Financial 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 Incar Financial Service, you can compare the effects of market volatilities on Shinhan Inverse and Incar Financial 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 Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Incar Financial.
Diversification Opportunities for Shinhan Inverse and Incar Financial
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinhan and Incar is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service 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 Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Incar Financial go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Incar Financial
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to under-perform the Incar Financial. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse Silver is 1.55 times less risky than Incar Financial. The stock trades about -0.29 of its potential returns per unit of risk. The Incar Financial Service is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 558,000 in Incar Financial Service on November 3, 2024 and sell it today you would earn a total of 15,000 from holding Incar Financial Service or generate 2.69% 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. Incar Financial Service
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Incar Financial Service |
Shinhan Inverse and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Incar Financial
The main advantage of trading using opposite Shinhan Inverse and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Incar Financial 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| Shinhan Inverse vs. Green Cross Medical | Shinhan Inverse vs. Formetal Co | Shinhan Inverse vs. Lotte Data Communication | Shinhan Inverse vs. NICE Information Service |
| Incar Financial vs. BGF Retail Co | Incar Financial vs. Jeong Moon Information | Incar Financial vs. Digital Power Communications | Incar Financial vs. Echomarketing CoLtd |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |