Correlation Between Shinhan Inverse and Sam A
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Sam A 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 Sam A 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 Sam A Pharm Co, you can compare the effects of market volatilities on Shinhan Inverse and Sam A 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 Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Sam A.
Diversification Opportunities for Shinhan Inverse and Sam A
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Sam is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm 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 Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Sam A go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Sam A
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.8 times more return on investment than Sam A. However, Shinhan Inverse Copper is 1.25 times less risky than Sam A. It trades about 0.31 of its potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.6 per unit of risk. If you would invest 524,500 in Shinhan Inverse Copper on September 4, 2024 and sell it today you would earn a total of 45,500 from holding Shinhan Inverse Copper or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. Sam A Pharm Co
Performance |
| Timeline |
| Shinhan Inverse Copper |
| Sam A Pharm |
Shinhan Inverse and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Sam A
The main advantage of trading using opposite Shinhan Inverse and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.| Shinhan Inverse vs. HJ ShipBuilding Construction | Shinhan Inverse vs. Semyung Electric Machinery | Shinhan Inverse vs. ENERGYMACHINERY KOREA CoLtd | Shinhan Inverse vs. Pureun Mutual Savings |
| Sam A vs. Taeyang Metal Industrial | Sam A vs. Youngsin Metal Industrial | Sam A vs. Duksan Hi Metal | Sam A vs. Shinhan Inverse Copper |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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