Correlation Between Shinhan Financial and Daesung Private
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Daesung Private 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 Financial and Daesung Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Financial Group and Daesung Private Equity, you can compare the effects of market volatilities on Shinhan Financial and Daesung Private 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 Financial with a short position of Daesung Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Daesung Private.
Diversification Opportunities for Shinhan Financial and Daesung Private
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Daesung is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Daesung Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Private Equity and Shinhan Financial 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 Financial Group are associated (or correlated) with Daesung Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Private Equity has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Daesung Private go up and down completely randomly.
Pair Corralation between Shinhan Financial and Daesung Private
Assuming the 90 days trading horizon Shinhan Financial is expected to generate 4.24 times less return on investment than Daesung Private. But when comparing it to its historical volatility, Shinhan Financial Group is 2.39 times less risky than Daesung Private. It trades about 0.06 of its potential returns per unit of risk. Daesung Private Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 186,500 in Daesung Private Equity on October 20, 2024 and sell it today you would earn a total of 9,600 from holding Daesung Private Equity or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Daesung Private Equity
Performance |
| Timeline |
| Shinhan Financial |
| Daesung Private Equity |
Shinhan Financial and Daesung Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Daesung Private
The main advantage of trading using opposite Shinhan Financial and Daesung Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Daesung Private 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 Daesung Private will offset losses from the drop in Daesung Private's long position.| Shinhan Financial vs. INNOX Advanced Materials | Shinhan Financial vs. Choil Aluminum | Shinhan Financial vs. Ecoplastic | Shinhan Financial vs. Phoenix Materials Co |
| Daesung Private vs. Korea New Network | Daesung Private vs. ICD Co | Daesung Private vs. DYPNF CoLtd | Daesung Private vs. Busan Industrial Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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