Correlation Between Shinhan Inverse and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Samsung Life 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 Samsung Life 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 Samsung Life Insurance, you can compare the effects of market volatilities on Shinhan Inverse and Samsung Life 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 Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Samsung Life.
Diversification Opportunities for Shinhan Inverse and Samsung Life
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shinhan and Samsung is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and Samsung Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life Insurance 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 Samsung Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Life Insurance has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Samsung Life go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Samsung Life
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.59 times more return on investment than Samsung Life. However, Shinhan Inverse Copper is 1.68 times less risky than Samsung Life. It trades about -0.17 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about -0.12 per unit of risk. If you would invest 561,500 in Shinhan Inverse Copper on October 17, 2024 and sell it today you would lose (21,000) from holding Shinhan Inverse Copper or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. Samsung Life Insurance
Performance |
| Timeline |
| Shinhan Inverse Copper |
| Samsung Life Insurance |
Shinhan Inverse and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Samsung Life
The main advantage of trading using opposite Shinhan Inverse and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Samsung Life 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 Samsung Life will offset losses from the drop in Samsung Life's long position.| Shinhan Inverse vs. TJ media Co | Shinhan Inverse vs. SKONEC Entertainment Co | Shinhan Inverse vs. Seoul Electronics Telecom | Shinhan Inverse vs. Samji Electronics Co |
| Samsung Life vs. Shinhan Inverse Copper | Samsung Life vs. Seoyon Topmetal Co | Samsung Life vs. Duksan Hi Metal | Samsung Life vs. Innowireless 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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