Correlation Between SHINWON STRUCTION and Green Plus
Can any of the company-specific risk be diversified away by investing in both SHINWON STRUCTION and Green Plus 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 SHINWON STRUCTION and Green Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHINWON STRUCTION COMPANY and Green Plus Co, you can compare the effects of market volatilities on SHINWON STRUCTION and Green Plus 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 SHINWON STRUCTION with a short position of Green Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHINWON STRUCTION and Green Plus.
Diversification Opportunities for SHINWON STRUCTION and Green Plus
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SHINWON and Green is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SHINWON STRUCTION COMPANY and Green Plus Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Plus and SHINWON STRUCTION 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 SHINWON STRUCTION COMPANY are associated (or correlated) with Green Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Plus has no effect on the direction of SHINWON STRUCTION i.e., SHINWON STRUCTION and Green Plus go up and down completely randomly.
Pair Corralation between SHINWON STRUCTION and Green Plus
Assuming the 90 days trading horizon SHINWON STRUCTION COMPANY is expected to under-perform the Green Plus. In addition to that, SHINWON STRUCTION is 1.63 times more volatile than Green Plus Co. It trades about -0.06 of its total potential returns per unit of risk. Green Plus Co is currently generating about -0.03 per unit of volatility. If you would invest 905,000 in Green Plus Co on September 13, 2024 and sell it today you would lose (76,000) from holding Green Plus Co or give up 8.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.31% |
Values | Daily Returns |
SHINWON STRUCTION COMPANY vs. Green Plus Co
Performance |
Timeline |
SHINWON STRUCTION PANY |
Green Plus |
SHINWON STRUCTION and Green Plus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SHINWON STRUCTION and Green Plus
The main advantage of trading using opposite SHINWON STRUCTION and Green Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHINWON STRUCTION position performs unexpectedly, Green Plus 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 Green Plus will offset losses from the drop in Green Plus' long position.SHINWON STRUCTION vs. Sempio Foods Co | SHINWON STRUCTION vs. Korean Reinsurance Co | SHINWON STRUCTION vs. FoodNamoo | SHINWON STRUCTION vs. Kisan Telecom Co |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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