Correlation Between Shinhan Inverse and HLB Power
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and HLB Power 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 HLB Power 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 HLB Power Co, you can compare the effects of market volatilities on Shinhan Inverse and HLB Power 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 HLB Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and HLB Power.
Diversification Opportunities for Shinhan Inverse and HLB Power
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and HLB is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and HLB Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLB Power 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 HLB Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLB Power has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and HLB Power go up and down completely randomly.
Pair Corralation between Shinhan Inverse and HLB Power
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.28 times more return on investment than HLB Power. However, Shinhan Inverse Copper is 3.53 times less risky than HLB Power. It trades about -0.03 of its potential returns per unit of risk. HLB Power Co is currently generating about -0.01 per unit of risk. If you would invest 606,500 in Shinhan Inverse Copper on November 3, 2024 and sell it today you would lose (60,500) from holding Shinhan Inverse Copper or give up 9.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.92% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. HLB Power Co
Performance |
| Timeline |
| Shinhan Inverse Copper |
| HLB Power |
Shinhan Inverse and HLB Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and HLB Power
The main advantage of trading using opposite Shinhan Inverse and HLB Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, HLB Power 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 HLB Power will offset losses from the drop in HLB Power's long position.| Shinhan Inverse vs. Polaris Office Corp | Shinhan Inverse vs. Grand Korea Leisure | Shinhan Inverse vs. Korean Reinsurance Co | Shinhan Inverse vs. Shinhan Inverse Silver |
| HLB Power vs. Samsung Card Co | HLB Power vs. EBEST Investment Securities | HLB Power vs. Koh Young Technology | HLB Power vs. Hansol Chemica |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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