Correlation Between SHINHAN FINL and Apple
Can any of the company-specific risk be diversified away by investing in both SHINHAN FINL and Apple 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 FINL and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHINHAN FINL ADR1 and Apple Inc, you can compare the effects of market volatilities on SHINHAN FINL and Apple 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 FINL with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHINHAN FINL and Apple.
Diversification Opportunities for SHINHAN FINL and Apple
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SHINHAN and Apple is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding SHINHAN FINL ADR1 and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and SHINHAN FINL 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 FINL ADR1 are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of SHINHAN FINL i.e., SHINHAN FINL and Apple go up and down completely randomly.
Pair Corralation between SHINHAN FINL and Apple
Assuming the 90 days trading horizon SHINHAN FINL ADR1 is expected to generate 1.42 times more return on investment than Apple. However, SHINHAN FINL is 1.42 times more volatile than Apple Inc. It trades about 0.09 of its potential returns per unit of risk. Apple Inc is currently generating about -0.33 per unit of risk. If you would invest 3,240 in SHINHAN FINL ADR1 on October 19, 2024 and sell it today you would earn a total of 80.00 from holding SHINHAN FINL ADR1 or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
SHINHAN FINL ADR1 vs. Apple Inc
Performance |
| Timeline |
| SHINHAN FINL ADR1 |
| Apple Inc |
SHINHAN FINL and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHINHAN FINL and Apple
The main advantage of trading using opposite SHINHAN FINL and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHINHAN FINL position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| SHINHAN FINL vs. China Merchants Bank | SHINHAN FINL vs. HDFC Bank Limited | SHINHAN FINL vs. ICICI Bank Limited | SHINHAN FINL vs. PT Bank Central |
| Apple vs. ecotel communication ag | Apple vs. INTERSHOP Communications Aktiengesellschaft | Apple vs. NORTHEAST UTILITIES | Apple vs. Canadian Utilities Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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