Correlation Between Shinhan Inverse and Seah Steel
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Seah Steel 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 Seah Steel 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 Seah Steel Corp, you can compare the effects of market volatilities on Shinhan Inverse and Seah Steel 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 Seah Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Seah Steel.
Diversification Opportunities for Shinhan Inverse and Seah Steel
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Seah is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and Seah Steel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seah Steel Corp 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 Seah Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seah Steel Corp has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Seah Steel go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Seah Steel
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to under-perform the Seah Steel. In addition to that, Shinhan Inverse is 1.29 times more volatile than Seah Steel Corp. It trades about -0.09 of its total potential returns per unit of risk. Seah Steel Corp is currently generating about 0.07 per unit of volatility. If you would invest 11,080,000 in Seah Steel Corp on September 12, 2024 and sell it today you would earn a total of 630,000 from holding Seah Steel Corp or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.55% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Seah Steel Corp
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Seah Steel Corp |
Shinhan Inverse and Seah Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Seah Steel
The main advantage of trading using opposite Shinhan Inverse and Seah Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Seah Steel 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 Seah Steel will offset losses from the drop in Seah Steel'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 |
| Seah Steel vs. Iljin Display | Seah Steel vs. Hana Financial | Seah Steel vs. DB Financial Investment | Seah Steel vs. Genie Music |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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