Correlation Between Shinhan Financial and Bounce Mobile
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Bounce Mobile 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 Bounce Mobile 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 Bounce Mobile Systems, you can compare the effects of market volatilities on Shinhan Financial and Bounce Mobile 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 Bounce Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Bounce Mobile.
Diversification Opportunities for Shinhan Financial and Bounce Mobile
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Bounce is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Bounce Mobile Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bounce Mobile Systems 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 Bounce Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bounce Mobile Systems has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Bounce Mobile go up and down completely randomly.
Pair Corralation between Shinhan Financial and Bounce Mobile
Considering the 90-day investment horizon Shinhan Financial is expected to generate 18.22 times less return on investment than Bounce Mobile. But when comparing it to its historical volatility, Shinhan Financial Group is 10.51 times less risky than Bounce Mobile. It trades about 0.05 of its potential returns per unit of risk. Bounce Mobile Systems is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.70 in Bounce Mobile Systems on October 24, 2024 and sell it today you would lose (0.60) from holding Bounce Mobile Systems or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.76% |
| Values | Daily Returns |
Shinhan Financial Group vs. Bounce Mobile Systems
Performance |
| Timeline |
| Shinhan Financial |
| Bounce Mobile Systems |
Shinhan Financial and Bounce Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Bounce Mobile
The main advantage of trading using opposite Shinhan Financial and Bounce Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Bounce Mobile 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 Bounce Mobile will offset losses from the drop in Bounce Mobile'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 |
| Bounce Mobile vs. Limitless Venture | Bounce Mobile vs. Guardian Capital Group | Bounce Mobile vs. Princeton Capital | Bounce Mobile vs. SMC Entertainment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |