Correlation Between Shinhan Copper and Shinhan Leverage
Can any of the company-specific risk be diversified away by investing in both Shinhan Copper and Shinhan Leverage 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 Copper and Shinhan Leverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Copper Futures and Shinhan Leverage WTI, you can compare the effects of market volatilities on Shinhan Copper and Shinhan Leverage 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 Copper with a short position of Shinhan Leverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Copper and Shinhan Leverage.
Diversification Opportunities for Shinhan Copper and Shinhan Leverage
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinhan and Shinhan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Copper Futures and Shinhan Leverage WTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Leverage WTI and Shinhan Copper 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 Copper Futures are associated (or correlated) with Shinhan Leverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Leverage WTI has no effect on the direction of Shinhan Copper i.e., Shinhan Copper and Shinhan Leverage go up and down completely randomly.
Pair Corralation between Shinhan Copper and Shinhan Leverage
Assuming the 90 days trading horizon Shinhan Copper Futures is expected to under-perform the Shinhan Leverage. But the etf apears to be less risky and, when comparing its historical volatility, Shinhan Copper Futures is 2.38 times less risky than Shinhan Leverage. The etf trades about -0.28 of its potential returns per unit of risk. The Shinhan Leverage WTI is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 87,000 in Shinhan Leverage WTI on October 7, 2024 and sell it today you would earn a total of 13,500 from holding Shinhan Leverage WTI or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Copper Futures vs. Shinhan Leverage WTI
Performance |
| Timeline |
| Shinhan Copper Futures |
| Shinhan Leverage WTI |
Shinhan Copper and Shinhan Leverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Copper and Shinhan Leverage
The main advantage of trading using opposite Shinhan Copper and Shinhan Leverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Copper position performs unexpectedly, Shinhan Leverage 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 Shinhan Leverage will offset losses from the drop in Shinhan Leverage's long position.| Shinhan Copper vs. Shinhan Inverse Dollar | Shinhan Copper vs. Shinhan BNP Paribas | Shinhan Copper vs. Shinhan Gold Futures | Shinhan Copper vs. Shinhan SOL KRX300 |
| Shinhan Leverage vs. Busan Industrial Co | Shinhan Leverage vs. Busan Ind | Shinhan Leverage vs. Mirae Asset Daewoo | Shinhan Leverage vs. UNISEM 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |