Correlation Between Shinhan Inverse and Kbi Metal
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Kbi 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 Kbi 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 Kbi Metal Co, you can compare the effects of market volatilities on Shinhan Inverse and Kbi 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 Kbi Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Kbi Metal.
Diversification Opportunities for Shinhan Inverse and Kbi Metal
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Kbi is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and Kbi Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kbi Metal 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 Kbi Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kbi Metal has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Kbi Metal go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Kbi Metal
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.43 times more return on investment than Kbi Metal. However, Shinhan Inverse Copper is 2.32 times less risky than Kbi Metal. It trades about 0.29 of its potential returns per unit of risk. Kbi Metal Co is currently generating about -0.4 per unit of risk. If you would invest 524,500 in Shinhan Inverse Copper on September 5, 2024 and sell it today you would earn a total of 44,500 from holding Shinhan Inverse Copper or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. Kbi Metal Co
Performance |
| Timeline |
| Shinhan Inverse Copper |
| Kbi Metal |
Shinhan Inverse and Kbi Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Kbi Metal
The main advantage of trading using opposite Shinhan Inverse and Kbi Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Kbi 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 Kbi Metal will offset losses from the drop in Kbi Metal's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
| Kbi Metal vs. LG Chemicals | Kbi Metal vs. SM Entertainment Co | Kbi Metal vs. PJ Metal Co | Kbi Metal 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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