Correlation Between SHINHAN FINL and PVH Corp
Can any of the company-specific risk be diversified away by investing in both SHINHAN FINL and PVH Corp 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 PVH Corp 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 PVH Corp, you can compare the effects of market volatilities on SHINHAN FINL and PVH Corp 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 PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHINHAN FINL and PVH Corp.
Diversification Opportunities for SHINHAN FINL and PVH Corp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SHINHAN and PVH is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SHINHAN FINL ADR1 and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp 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 PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of SHINHAN FINL i.e., SHINHAN FINL and PVH Corp go up and down completely randomly.
Pair Corralation between SHINHAN FINL and PVH Corp
Assuming the 90 days trading horizon SHINHAN FINL ADR1 is expected to generate 1.03 times more return on investment than PVH Corp. However, SHINHAN FINL is 1.03 times more volatile than PVH Corp. It trades about 0.25 of its potential returns per unit of risk. PVH Corp is currently generating about -0.34 per unit of risk. If you would invest 3,140 in SHINHAN FINL ADR1 on October 29, 2024 and sell it today you would earn a total of 260.00 from holding SHINHAN FINL ADR1 or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHINHAN FINL ADR1 vs. PVH Corp
Performance |
| Timeline |
| SHINHAN FINL ADR1 |
| PVH Corp |
SHINHAN FINL and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHINHAN FINL and PVH Corp
The main advantage of trading using opposite SHINHAN FINL and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHINHAN FINL position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp's long position.| SHINHAN FINL vs. PT Bank Central | SHINHAN FINL vs. DBS Group Holdings | SHINHAN FINL vs. State Bank of | SHINHAN FINL vs. PT Bank Rakyat |
| PVH Corp vs. BURLINGTON STORES | PVH Corp vs. ADRIATIC METALS LS 013355 | PVH Corp vs. Ross Stores | PVH Corp vs. BJs Wholesale Club |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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