Correlation Between Shinhan Inverse and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Youngsin Metal 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 Youngsin Metal 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 Youngsin Metal Industrial, you can compare the effects of market volatilities on Shinhan Inverse and Youngsin Metal 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 Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Youngsin Metal.
Diversification Opportunities for Shinhan Inverse and Youngsin Metal
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Youngsin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial 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 Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Youngsin Metal go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Youngsin Metal
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.79 times more return on investment than Youngsin Metal. However, Shinhan Inverse Copper is 1.26 times less risky than Youngsin Metal. It trades about -0.02 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.05 per unit of risk. If you would invest 608,500 in Shinhan Inverse Copper on September 2, 2024 and sell it today you would lose (43,500) from holding Shinhan Inverse Copper or give up 7.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.58% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Shinhan Inverse Copper |
| Youngsin Metal Industrial |
Shinhan Inverse and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Youngsin Metal
The main advantage of trading using opposite Shinhan Inverse and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| Shinhan Inverse vs. Woorim Machinery Co | Shinhan Inverse vs. SK Chemicals Co | Shinhan Inverse vs. Samick Musical Instruments | Shinhan Inverse vs. KEPCO Engineering Construction |
| Youngsin Metal vs. Digital Power Communications | Youngsin Metal vs. Iljin Display | Youngsin Metal vs. Lake Materials Co | Youngsin Metal vs. National Plastic 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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