Correlation Between SHINHAN FINL and SANOMA -
Can any of the company-specific risk be diversified away by investing in both SHINHAN FINL and SANOMA - 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 SANOMA - 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 SANOMA Dusseldorf, you can compare the effects of market volatilities on SHINHAN FINL and SANOMA - 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 SANOMA -. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHINHAN FINL and SANOMA -.
Diversification Opportunities for SHINHAN FINL and SANOMA -
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SHINHAN and SANOMA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SHINHAN FINL ADR1 and SANOMA Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOMA Dusseldorf 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 SANOMA -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOMA Dusseldorf has no effect on the direction of SHINHAN FINL i.e., SHINHAN FINL and SANOMA - go up and down completely randomly.
Pair Corralation between SHINHAN FINL and SANOMA -
Assuming the 90 days trading horizon SHINHAN FINL is expected to generate 1.16 times less return on investment than SANOMA -. In addition to that, SHINHAN FINL is 1.43 times more volatile than SANOMA Dusseldorf. It trades about 0.1 of its total potential returns per unit of risk. SANOMA Dusseldorf is currently generating about 0.17 per unit of volatility. If you would invest 791.00 in SANOMA Dusseldorf on November 7, 2024 and sell it today you would earn a total of 43.00 from holding SANOMA Dusseldorf or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHINHAN FINL ADR1 vs. SANOMA Dusseldorf
Performance |
| Timeline |
| SHINHAN FINL ADR1 |
| SANOMA Dusseldorf |
SHINHAN FINL and SANOMA - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHINHAN FINL and SANOMA -
The main advantage of trading using opposite SHINHAN FINL and SANOMA - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHINHAN FINL position performs unexpectedly, SANOMA - 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 SANOMA - will offset losses from the drop in SANOMA -'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 |
| SANOMA - vs. NTT DATA | SANOMA - vs. Tower One Wireless | SANOMA - vs. DICKER DATA LTD | SANOMA - vs. Pure Storage |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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