Correlation Between Shinhan Inverse and Namu Tech
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Namu Tech 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 Namu Tech 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 Namu Tech CoLtd, you can compare the effects of market volatilities on Shinhan Inverse and Namu Tech 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 Namu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Namu Tech.
Diversification Opportunities for Shinhan Inverse and Namu Tech
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Namu is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Copper and Namu Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namu Tech CoLtd 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 Namu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namu Tech CoLtd has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Namu Tech go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Namu Tech
Assuming the 90 days trading horizon Shinhan Inverse Copper is expected to generate 0.21 times more return on investment than Namu Tech. However, Shinhan Inverse Copper is 4.67 times less risky than Namu Tech. It trades about 0.09 of its potential returns per unit of risk. Namu Tech CoLtd is currently generating about -0.03 per unit of risk. If you would invest 563,000 in Shinhan Inverse Copper on September 25, 2024 and sell it today you would earn a total of 7,500 from holding Shinhan Inverse Copper or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Shinhan Inverse Copper vs. Namu Tech CoLtd
Performance |
| Timeline |
| Shinhan Inverse Copper |
| Namu Tech CoLtd |
Shinhan Inverse and Namu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Namu Tech
The main advantage of trading using opposite Shinhan Inverse and Namu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Namu Tech 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 Namu Tech will offset losses from the drop in Namu Tech's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Wonbang Tech Co | Shinhan Inverse vs. Busan Industrial Co | Shinhan Inverse vs. Busan Ind |
| Namu Tech vs. Shinhan Inverse Copper | Namu Tech vs. EBEST Investment Securities | Namu Tech vs. Kbi Metal Co | Namu Tech vs. Korea Investment Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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