Correlation Between Shinhan Financial and Active Health
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Active Health 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 Financial and Active Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Financial Group and Active Health Foods, you can compare the effects of market volatilities on Shinhan Financial and Active Health 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 Financial with a short position of Active Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Active Health.
Diversification Opportunities for Shinhan Financial and Active Health
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinhan and Active is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Active Health Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Active Health Foods and Shinhan 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 Shinhan Financial Group are associated (or correlated) with Active Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Active Health Foods has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Active Health go up and down completely randomly.
Pair Corralation between Shinhan Financial and Active Health
If you would invest 3,782 in Shinhan Financial Group on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Shinhan Financial Group or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Active Health Foods
Performance |
| Timeline |
| Shinhan Financial |
| Active Health Foods |
Shinhan Financial and Active Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Active Health
The main advantage of trading using opposite Shinhan Financial and Active Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Active Health 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 Active Health will offset losses from the drop in Active Health's long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| Active Health vs. Ventana Biotech | Active Health vs. Gold Ent Group | Active Health vs. Profitable Develop | Active Health vs. American Leisure Holdings |
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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