Correlation Between Shinhan WTI and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Shinhan WTI and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Shinhan WTI and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan WTI and Hankukpackage.
Diversification Opportunities for Shinhan WTI and Hankukpackage
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Hankukpackage is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan WTI Futures and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Shinhan WTI i.e., Shinhan WTI and Hankukpackage go up and down completely randomly.
Pair Corralation between Shinhan WTI and Hankukpackage
Assuming the 90 days trading horizon Shinhan WTI Futures is expected to under-perform the Hankukpackage. In addition to that, Shinhan WTI is 2.54 times more volatile than Hankukpackage Co. It trades about -0.08 of its total potential returns per unit of risk. Hankukpackage Co is currently generating about -0.02 per unit of volatility. If you would invest 170,000 in Hankukpackage Co on November 28, 2024 and sell it today you would lose (400.00) from holding Hankukpackage Co or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Shinhan WTI Futures vs. Hankukpackage Co
Performance |
| Timeline |
| Shinhan WTI Futures |
| Hankukpackage |
Shinhan WTI and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan WTI and Hankukpackage
The main advantage of trading using opposite Shinhan WTI and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan WTI position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Shinhan WTI vs. Husteel | Shinhan WTI vs. Wonil Special Steel | Shinhan WTI vs. ADTechnology CoLtd | Shinhan WTI vs. Dongil Steel Co |
| Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Sigong Tech Co | Hankukpackage vs. Namyang Dairy |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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