Correlation Between Shinhan Inverse and STCube
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and STCube 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 STCube 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 STCube Inc, you can compare the effects of market volatilities on Shinhan Inverse and STCube 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 STCube. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and STCube.
Diversification Opportunities for Shinhan Inverse and STCube
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and STCube is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and STCube Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STCube Inc 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 STCube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STCube Inc has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and STCube go up and down completely randomly.
Pair Corralation between Shinhan Inverse and STCube
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.25 times more return on investment than STCube. However, Shinhan Inverse Copper is 4.01 times less risky than STCube. It trades about 0.22 of its potential returns per unit of risk. STCube Inc is currently generating about -0.08 per unit of risk. If you would invest 532,000 in Shinhan Inverse Copper on September 1, 2024 and sell it today you would earn a total of 33,000 from holding Shinhan Inverse Copper or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. STCube Inc
Performance |
| Timeline |
| Shinhan Inverse Copper |
| STCube Inc |
Shinhan Inverse and STCube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and STCube
The main advantage of trading using opposite Shinhan Inverse and STCube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, STCube 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 STCube will offset losses from the drop in STCube's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
| STCube vs. Shinhan Inverse Copper | STCube vs. Korea Investment Holdings | STCube vs. DONGKUK TED METAL | STCube vs. Heungkuk Metaltech CoLtd |
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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