Correlation Between Yura Tech and Shinhan Financial
Can any of the company-specific risk be diversified away by investing in both Yura Tech 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 Yura Tech and Shinhan Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yura Tech Co and Shinhan Financial Group, you can compare the effects of market volatilities on Yura Tech 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 Yura Tech with a short position of Shinhan Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Shinhan Financial.
Diversification Opportunities for Yura Tech and Shinhan Financial
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yura and Shinhan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Shinhan Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Financial and Yura Tech 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 Yura Tech Co 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 Yura Tech i.e., Yura Tech and Shinhan Financial go up and down completely randomly.
Pair Corralation between Yura Tech and Shinhan Financial
Assuming the 90 days trading horizon Yura Tech Co is expected to under-perform the Shinhan Financial. But the stock apears to be less risky and, when comparing its historical volatility, Yura Tech Co is 1.71 times less risky than Shinhan Financial. The stock trades about -0.22 of its potential returns per unit of risk. The Shinhan Financial Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,450,000 in Shinhan Financial Group on September 5, 2024 and sell it today you would earn a total of 190,000 from holding Shinhan Financial Group or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. Shinhan Financial Group
Performance |
| Timeline |
| Yura Tech |
| Shinhan Financial |
Yura Tech and Shinhan Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Shinhan Financial
The main advantage of trading using opposite Yura Tech and Shinhan Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech 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.| Yura Tech vs. Shinhan Financial Group | Yura Tech vs. Display Tech Co | Yura Tech vs. Dongbu Insurance Co | Yura Tech vs. InfoBank |
| Shinhan Financial vs. Coloray International Investment | Shinhan Financial vs. Sewoon Medical Co | Shinhan Financial vs. Atinum Investment Co | Shinhan Financial vs. E Investment Development |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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