Correlation Between Shinhan Inverse and EV Advanced
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and EV Advanced 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 EV Advanced 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 EV Advanced Material, you can compare the effects of market volatilities on Shinhan Inverse and EV Advanced 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 EV Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and EV Advanced.
Diversification Opportunities for Shinhan Inverse and EV Advanced
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and 131400 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and EV Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EV Advanced Material 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 EV Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EV Advanced Material has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and EV Advanced go up and down completely randomly.
Pair Corralation between Shinhan Inverse and EV Advanced
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.32 times more return on investment than EV Advanced. However, Shinhan Inverse Copper is 3.11 times less risky than EV Advanced. It trades about -0.02 of its potential returns per unit of risk. EV Advanced Material is currently generating about -0.03 per unit of risk. If you would invest 620,000 in Shinhan Inverse Copper on August 25, 2024 and sell it today you would lose (54,000) from holding Shinhan Inverse Copper or give up 8.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.68% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. EV Advanced Material
Performance |
| Timeline |
| Shinhan Inverse Copper |
| EV Advanced Material |
Shinhan Inverse and EV Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and EV Advanced
The main advantage of trading using opposite Shinhan Inverse and EV Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, EV Advanced 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 EV Advanced will offset losses from the drop in EV Advanced's long position.| Shinhan Inverse vs. J Steel Co | Shinhan Inverse vs. Hansol Homedeco Co | Shinhan Inverse vs. Dong A Steel Technology | Shinhan Inverse vs. Hankuk Steel Wire |
| EV Advanced vs. Display Tech Co | EV Advanced vs. Lion Chemtech Co | EV Advanced vs. Amogreentech Co | EV Advanced vs. Vitzro Tech 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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