Correlation Between Shinhan WTI and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both Shinhan WTI and Kisan Telecom 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 WTI and Kisan Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan WTI Futures and Kisan Telecom Co, you can compare the effects of market volatilities on Shinhan WTI and Kisan Telecom 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 WTI with a short position of Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan WTI and Kisan Telecom.
Diversification Opportunities for Shinhan WTI and Kisan Telecom
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinhan and Kisan is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan WTI Futures and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom and Shinhan WTI 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 WTI Futures are associated (or correlated) with Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of Shinhan WTI i.e., Shinhan WTI and Kisan Telecom go up and down completely randomly.
Pair Corralation between Shinhan WTI and Kisan Telecom
Assuming the 90 days trading horizon Shinhan WTI Futures is expected to generate 1.01 times more return on investment than Kisan Telecom. However, Shinhan WTI is 1.01 times more volatile than Kisan Telecom Co. It trades about 0.02 of its potential returns per unit of risk. Kisan Telecom Co is currently generating about -0.09 per unit of risk. If you would invest 708,000 in Shinhan WTI Futures on September 2, 2024 and sell it today you would earn a total of 13,500 from holding Shinhan WTI Futures or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
Shinhan WTI Futures vs. Kisan Telecom Co
Performance |
| Timeline |
| Shinhan WTI Futures |
| Kisan Telecom |
Shinhan WTI and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan WTI and Kisan Telecom
The main advantage of trading using opposite Shinhan WTI and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan WTI position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| Shinhan WTI vs. BNK Financial Group | Shinhan WTI vs. Dongbu Insurance Co | Shinhan WTI vs. KakaoBank Corp | Shinhan WTI vs. Korea Alcohol Industrial |
| Kisan Telecom vs. Dongsin Engineering Construction | Kisan Telecom vs. Doosan Fuel Cell | Kisan Telecom vs. Daishin Balance 1 | Kisan Telecom vs. Total Soft Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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