Correlation Between SHINHAN FINL and LEGAL GENERAL
Can any of the company-specific risk be diversified away by investing in both SHINHAN FINL and LEGAL GENERAL 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 LEGAL GENERAL 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 LEGAL GENERAL, you can compare the effects of market volatilities on SHINHAN FINL and LEGAL GENERAL 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 LEGAL GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHINHAN FINL and LEGAL GENERAL.
Diversification Opportunities for SHINHAN FINL and LEGAL GENERAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SHINHAN and LEGAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SHINHAN FINL ADR1 and LEGAL GENERAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEGAL GENERAL 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 LEGAL GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEGAL GENERAL has no effect on the direction of SHINHAN FINL i.e., SHINHAN FINL and LEGAL GENERAL go up and down completely randomly.
Pair Corralation between SHINHAN FINL and LEGAL GENERAL
If you would invest 3,180 in SHINHAN FINL ADR1 on November 6, 2024 and sell it today you would earn a total of 200.00 from holding SHINHAN FINL ADR1 or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SHINHAN FINL ADR1 vs. LEGAL GENERAL
Performance |
| Timeline |
| SHINHAN FINL ADR1 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LEGAL GENERAL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
SHINHAN FINL and LEGAL GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHINHAN FINL and LEGAL GENERAL
The main advantage of trading using opposite SHINHAN FINL and LEGAL GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHINHAN FINL position performs unexpectedly, LEGAL GENERAL 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 LEGAL GENERAL will offset losses from the drop in LEGAL GENERAL's long position.| SHINHAN FINL vs. Universal Display | SHINHAN FINL vs. Gaming and Leisure | SHINHAN FINL vs. Take Two Interactive Software | SHINHAN FINL vs. PLAYMATES TOYS |
| LEGAL GENERAL vs. UNITED UTILITIES GR | LEGAL GENERAL vs. Planet Fitness | LEGAL GENERAL vs. Cardinal Health | LEGAL GENERAL vs. DeVry Education Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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