Correlation Between Shinhan WTI and Atec
Can any of the company-specific risk be diversified away by investing in both Shinhan WTI and Atec 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 Atec 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 Atec Co, you can compare the effects of market volatilities on Shinhan WTI and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan WTI and Atec.
Diversification Opportunities for Shinhan WTI and Atec
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Atec is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan WTI Futures and Atec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec has no effect on the direction of Shinhan WTI i.e., Shinhan WTI and Atec go up and down completely randomly.
Pair Corralation between Shinhan WTI and Atec
Assuming the 90 days trading horizon Shinhan WTI is expected to generate 1.05 times less return on investment than Atec. But when comparing it to its historical volatility, Shinhan WTI Futures is 3.5 times less risky than Atec. It trades about 0.03 of its potential returns per unit of risk. Atec Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,479,000 in Atec Co on August 30, 2024 and sell it today you would lose (91,000) from holding Atec Co or give up 6.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Shinhan WTI Futures vs. Atec Co
Performance |
| Timeline |
| Shinhan WTI Futures |
| Atec |
Shinhan WTI and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan WTI and Atec
The main advantage of trading using opposite Shinhan WTI and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan WTI position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Shinhan WTI vs. Hwangkum Steel Technology | Shinhan WTI vs. Koryo Credit Information | Shinhan WTI vs. Jeong Moon Information | Shinhan WTI vs. BIT Computer Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |