Correlation Between Dongil Technology and Shinhan Financial
Can any of the company-specific risk be diversified away by investing in both Dongil Technology and Shinhan Financial 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 Dongil Technology and Shinhan Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and Shinhan Financial Group, you can compare the effects of market volatilities on Dongil Technology and Shinhan Financial 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 Dongil Technology with a short position of Shinhan Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and Shinhan Financial.
Diversification Opportunities for Dongil Technology and Shinhan Financial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongil and Shinhan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology and Shinhan Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Financial and Dongil Technology 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 Dongil Technology are associated (or correlated) with Shinhan Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Financial has no effect on the direction of Dongil Technology i.e., Dongil Technology and Shinhan Financial go up and down completely randomly.
Pair Corralation between Dongil Technology and Shinhan Financial
Assuming the 90 days trading horizon Dongil Technology is expected to generate 7.11 times less return on investment than Shinhan Financial. In addition to that, Dongil Technology is 1.19 times more volatile than Shinhan Financial Group. It trades about 0.01 of its total potential returns per unit of risk. Shinhan Financial Group is currently generating about 0.06 per unit of volatility. If you would invest 3,382,208 in Shinhan Financial Group on September 3, 2024 and sell it today you would earn a total of 1,917,792 from holding Shinhan Financial Group or generate 56.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Technology vs. Shinhan Financial Group
Performance |
| Timeline |
| Dongil Technology |
| Shinhan Financial |
Dongil Technology and Shinhan Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and Shinhan Financial
The main advantage of trading using opposite Dongil Technology and Shinhan Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology position performs unexpectedly, Shinhan Financial 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 Financial will offset losses from the drop in Shinhan Financial's long position.| Dongil Technology vs. Dongsin Engineering Construction | Dongil Technology vs. Doosan Fuel Cell | Dongil Technology vs. Daishin Balance 1 | Dongil Technology vs. Total Soft Bank |
| Shinhan Financial vs. Dongil Technology | Shinhan Financial vs. Jeong Moon Information | Shinhan Financial vs. Koh Young Technology | Shinhan Financial vs. Eugene Technology CoLtd |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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