Correlation Between Shinhan Inverse and Samick Musical
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Samick Musical 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 Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Inverse Copper and Samick Musical Instruments, you can compare the effects of market volatilities on Shinhan Inverse and Samick Musical 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 Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Samick Musical.
Diversification Opportunities for Shinhan Inverse and Samick Musical
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Samick is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and Samick Musical Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samick Musical Instr 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 Copper are associated (or correlated) with Samick Musical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samick Musical Instr has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Samick Musical go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Samick Musical
Assuming the 90 days trading horizon Shinhan Inverse is expected to generate 21.48 times less return on investment than Samick Musical. But when comparing it to its historical volatility, Shinhan Inverse Copper is 1.98 times less risky than Samick Musical. It trades about 0.02 of its potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 105,064 in Samick Musical Instruments on October 12, 2024 and sell it today you would earn a total of 11,736 from holding Samick Musical Instruments or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. Samick Musical Instruments
Performance |
| Timeline |
| Shinhan Inverse Copper |
| Samick Musical Instr |
Shinhan Inverse and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Samick Musical
The main advantage of trading using opposite Shinhan Inverse and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Samick Musical 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 Samick Musical will offset losses from the drop in Samick Musical's long position.| Shinhan Inverse vs. Nh Investment And | Shinhan Inverse vs. Daishin Information Communications | Shinhan Inverse vs. E Investment Development | Shinhan Inverse vs. KTB Investment Securities |
| Samick Musical vs. Shinhan Inverse Copper | Samick Musical vs. Daiyang Metal Co | Samick Musical vs. DONGKUK TED METAL | Samick Musical vs. Seoyon Topmetal 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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