Correlation Between Shinhan Dollar and Samsung KODEX
Can any of the company-specific risk be diversified away by investing in both Shinhan Dollar and Samsung KODEX 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 Dollar and Samsung KODEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Dollar Index and Samsung KODEX Samsung, you can compare the effects of market volatilities on Shinhan Dollar and Samsung KODEX 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 Dollar with a short position of Samsung KODEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Dollar and Samsung KODEX.
Diversification Opportunities for Shinhan Dollar and Samsung KODEX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Dollar Index and Samsung KODEX Samsung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung KODEX Samsung and Shinhan Dollar 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 Dollar Index are associated (or correlated) with Samsung KODEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung KODEX Samsung has no effect on the direction of Shinhan Dollar i.e., Shinhan Dollar and Samsung KODEX go up and down completely randomly.
Pair Corralation between Shinhan Dollar and Samsung KODEX
If you would invest (100.00) in Shinhan Dollar Index on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Shinhan Dollar Index or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Shinhan Dollar Index vs. Samsung KODEX Samsung
Performance |
| Timeline |
| Shinhan Dollar Index |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Samsung KODEX Samsung |
Shinhan Dollar and Samsung KODEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Dollar and Samsung KODEX
The main advantage of trading using opposite Shinhan Dollar and Samsung KODEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Dollar position performs unexpectedly, Samsung KODEX 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 Samsung KODEX will offset losses from the drop in Samsung KODEX's long position.The idea behind Shinhan Dollar Index and Samsung KODEX Samsung pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Samsung KODEX vs. Samsung KODEX IT | Samsung KODEX vs. Samsung KODEX Machinary | Samsung KODEX vs. Samsung Asset Management | Samsung KODEX vs. Samsung KODEX Copper |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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