Correlation Between Shinhan Inverse and Fine Besteel
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Fine Besteel 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 Fine Besteel 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 Fine Besteel Co, you can compare the effects of market volatilities on Shinhan Inverse and Fine Besteel 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 Fine Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Fine Besteel.
Diversification Opportunities for Shinhan Inverse and Fine Besteel
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinhan and Fine is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and Fine Besteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Besteel 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 Fine Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Besteel has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Fine Besteel go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Fine Besteel
Assuming the 90 days trading horizon Shinhan Inverse is expected to generate 3.26 times less return on investment than Fine Besteel. But when comparing it to its historical volatility, Shinhan Inverse Copper is 3.55 times less risky than Fine Besteel. It trades about 0.22 of its potential returns per unit of risk. Fine Besteel Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 86,000 in Fine Besteel Co on September 1, 2024 and sell it today you would earn a total of 18,700 from holding Fine Besteel Co or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. Fine Besteel Co
Performance |
| Timeline |
| Shinhan Inverse Copper |
| Fine Besteel |
Shinhan Inverse and Fine Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Fine Besteel
The main advantage of trading using opposite Shinhan Inverse and Fine Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Fine Besteel 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 Fine Besteel will offset losses from the drop in Fine Besteel's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
| Fine Besteel vs. AptaBio Therapeutics | Fine Besteel vs. Daewoo SBI SPAC | Fine Besteel vs. Dream Security co | Fine Besteel vs. Microfriend |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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