Correlation Between Shinhan Financial and Aristocrat Group
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Aristocrat Group 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 Aristocrat Group 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 Aristocrat Group Corp, you can compare the effects of market volatilities on Shinhan Financial and Aristocrat Group 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 Aristocrat Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Aristocrat Group.
Diversification Opportunities for Shinhan Financial and Aristocrat Group
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinhan and Aristocrat is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Aristocrat Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristocrat Group Corp 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 Aristocrat Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristocrat Group Corp has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Aristocrat Group go up and down completely randomly.
Pair Corralation between Shinhan Financial and Aristocrat Group
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.38 times more return on investment than Aristocrat Group. However, Shinhan Financial Group is 2.63 times less risky than Aristocrat Group. It trades about -0.04 of its potential returns per unit of risk. Aristocrat Group Corp is currently generating about -0.15 per unit of risk. If you would invest 4,197 in Shinhan Financial Group on September 4, 2024 and sell it today you would lose (311.00) from holding Shinhan Financial Group or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Aristocrat Group Corp
Performance |
| Timeline |
| Shinhan Financial |
| Aristocrat Group Corp |
Shinhan Financial and Aristocrat Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Aristocrat Group
The main advantage of trading using opposite Shinhan Financial and Aristocrat Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Aristocrat Group 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 Aristocrat Group will offset losses from the drop in Aristocrat Group's long position.| Shinhan Financial vs. Community West Bancshares | Shinhan Financial vs. First Financial Northwest | Shinhan Financial vs. Ponce Financial Group | Shinhan Financial vs. Finwise Bancorp |
| Aristocrat Group vs. Federal National Mortgage | Aristocrat Group vs. Shinhan Financial Group | Aristocrat Group vs. Woori Financial Group | Aristocrat Group vs. Grupo Aval |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |