Correlation Between Dgb Financial and Shinhan Financial
Can any of the company-specific risk be diversified away by investing in both Dgb Financial 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 Dgb Financial and Shinhan Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dgb Financial and Shinhan Financial Group, you can compare the effects of market volatilities on Dgb Financial 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 Dgb Financial with a short position of Shinhan Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dgb Financial and Shinhan Financial.
Diversification Opportunities for Dgb Financial and Shinhan Financial
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dgb and Shinhan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dgb Financial and Shinhan Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Financial and Dgb 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 Dgb Financial 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 Dgb Financial i.e., Dgb Financial and Shinhan Financial go up and down completely randomly.
Pair Corralation between Dgb Financial and Shinhan Financial
Assuming the 90 days trading horizon Dgb Financial is expected to generate 0.81 times more return on investment than Shinhan Financial. However, Dgb Financial is 1.24 times less risky than Shinhan Financial. It trades about 0.11 of its potential returns per unit of risk. Shinhan Financial Group is currently generating about -0.04 per unit of risk. If you would invest 854,316 in Dgb Financial on January 18, 2025 and sell it today you would earn a total of 77,684 from holding Dgb Financial or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dgb Financial vs. Shinhan Financial Group
Performance |
| Timeline |
| Dgb Financial |
| Shinhan Financial |
Dgb Financial and Shinhan Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dgb Financial and Shinhan Financial
The main advantage of trading using opposite Dgb Financial and Shinhan Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dgb Financial 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.| Dgb Financial vs. Samsung Electronics Co | Dgb Financial vs. Samsung Electronics Co | Dgb Financial vs. Hyundai Motor Co | Dgb Financial vs. Hyundai Motor Co |
| Shinhan Financial vs. Narae Nanotech Corp | Shinhan Financial vs. POSCO M TECH Co | Shinhan Financial vs. Sung Bo Chemicals | Shinhan Financial vs. SS TECH |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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