Correlation Between Shinhan Inverse and Cytogen
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Cytogen 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 Cytogen 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 Cytogen, you can compare the effects of market volatilities on Shinhan Inverse and Cytogen 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 Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Cytogen.
Diversification Opportunities for Shinhan Inverse and Cytogen
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Cytogen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen 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 Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Cytogen go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Cytogen
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to generate 0.45 times more return on investment than Cytogen. However, Shinhan Inverse Silver is 2.24 times less risky than Cytogen. It trades about -0.03 of its potential returns per unit of risk. Cytogen is currently generating about -0.12 per unit of risk. If you would invest 376,000 in Shinhan Inverse Silver on September 12, 2024 and sell it today you would lose (36,000) from holding Shinhan Inverse Silver or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.52% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Cytogen
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Cytogen |
Shinhan Inverse and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Cytogen
The main advantage of trading using opposite Shinhan Inverse and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| Shinhan Inverse vs. SAMG Entertainment Co | Shinhan Inverse vs. iNtRON Biotechnology | Shinhan Inverse vs. Korea Investment Holdings | Shinhan Inverse vs. Daewon Media Co |
| Cytogen vs. YG Entertainment | Cytogen vs. Tamul Multimedia Co | Cytogen vs. J Steel Co | Cytogen vs. Husteel |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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