Correlation Between Shinhan Inverse and Ananti

Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and Ananti 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 Inverse and Ananti into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shinhan Inverse WTI and Ananti Inc, you can compare the effects of market volatilities on Shinhan Inverse and Ananti 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 Inverse with a short position of Ananti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Ananti.

Diversification Opportunities for Shinhan Inverse and Ananti

-0.48

Correlation Coefficient

Shinhan Inverse  Ananti

Very good diversification

The 3 months correlation between Shinhan and Ananti is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse WTI and Ananti Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ananti Inc and Shinhan Inverse 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 Inverse WTI are associated (or correlated) with Ananti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ananti Inc has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and Ananti go up and down completely randomly.

Pair Corralation between Shinhan Inverse and Ananti

Assuming the 90 days trading horizon Shinhan Inverse WTI is expected to under-perform the Ananti. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Inverse WTI is 1.43 times less risky than Ananti. The stock trades about -0.03 of its potential returns per unit of risk. The Ananti Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  621,000  in Ananti Inc on October 22, 2024 and sell it today you would lose (40,000) from holding Ananti Inc or give up 6.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.16%
Values	Daily Returns

Shinhan Inverse WTI  vs.  Ananti Inc

Shinhan Inverse WTI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shinhan Inverse WTI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Ananti Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ananti Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ananti sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shinhan Inverse and Ananti

The main advantage of trading using opposite Shinhan Inverse and Ananti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, Ananti 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 Ananti will offset losses from the drop in Ananti's long position.

The idea behind Shinhan Inverse WTI and Ananti Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.