Correlation Between Shinhan WTI and Nature
Can any of the company-specific risk be diversified away by investing in both Shinhan WTI and Nature 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 Nature 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 Nature and Environment, you can compare the effects of market volatilities on Shinhan WTI and Nature 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 Nature. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan WTI and Nature.
Diversification Opportunities for Shinhan WTI and Nature
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shinhan and Nature is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan WTI Futures and Nature and Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nature and Environment 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 Nature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nature and Environment has no effect on the direction of Shinhan WTI i.e., Shinhan WTI and Nature go up and down completely randomly.
Pair Corralation between Shinhan WTI and Nature
Assuming the 90 days trading horizon Shinhan WTI Futures is expected to generate 0.44 times more return on investment than Nature. However, Shinhan WTI Futures is 2.26 times less risky than Nature. It trades about 0.04 of its potential returns per unit of risk. Nature and Environment is currently generating about 0.0 per unit of risk. If you would invest 716,000 in Shinhan WTI Futures on October 1, 2024 and sell it today you would earn a total of 16,000 from holding Shinhan WTI Futures or generate 2.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shinhan WTI Futures vs. Nature and Environment
Performance |
Timeline |
Shinhan WTI Futures |
Nature and Environment |
Shinhan WTI and Nature Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinhan WTI and Nature
The main advantage of trading using opposite Shinhan WTI and Nature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan WTI position performs unexpectedly, Nature 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 Nature will offset losses from the drop in Nature's long position.Shinhan WTI vs. Samsung Electronics Co | Shinhan WTI vs. Samsung Electronics Co | Shinhan WTI vs. LG Energy Solution | Shinhan WTI vs. SK Hynix |
Nature vs. Busan Industrial Co | Nature vs. Busan Ind | Nature vs. Mirae Asset Daewoo | Nature vs. Shinhan WTI Futures |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |