Correlation Between Shinhan WTI and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both Shinhan WTI and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on Shinhan WTI and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan WTI and Cuckoo Homesys.
Diversification Opportunities for Shinhan WTI and Cuckoo Homesys
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinhan and Cuckoo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan WTI Futures and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of Shinhan WTI i.e., Shinhan WTI and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between Shinhan WTI and Cuckoo Homesys
Assuming the 90 days trading horizon Shinhan WTI is expected to generate 4.4 times less return on investment than Cuckoo Homesys. In addition to that, Shinhan WTI is 1.08 times more volatile than Cuckoo Homesys Co. It trades about 0.0 of its total potential returns per unit of risk. Cuckoo Homesys Co is currently generating about 0.01 per unit of volatility. If you would invest 2,071,281 in Cuckoo Homesys Co on September 1, 2024 and sell it today you would earn a total of 3,719 from holding Cuckoo Homesys Co or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.47% |
| Values | Daily Returns |
Shinhan WTI Futures vs. Cuckoo Homesys Co
Performance |
| Timeline |
| Shinhan WTI Futures |
| Cuckoo Homesys |
Shinhan WTI and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan WTI and Cuckoo Homesys
The main advantage of trading using opposite Shinhan WTI and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan WTI position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| Shinhan WTI vs. Kaonmedia Co | Shinhan WTI vs. YG Entertainment | Shinhan WTI vs. Dongil Metal Co | Shinhan WTI vs. DONGKUK TED METAL |
| Cuckoo Homesys vs. Busan Industrial Co | Cuckoo Homesys vs. Busan Ind | Cuckoo Homesys vs. Mirae Asset Daewoo | Cuckoo Homesys vs. Finebesteel |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |