Correlation Between Shinhan Financial and Bonso Electronics
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Bonso Electronics 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 Bonso Electronics 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 Bonso Electronics International, you can compare the effects of market volatilities on Shinhan Financial and Bonso Electronics 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 Bonso Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Bonso Electronics.
Diversification Opportunities for Shinhan Financial and Bonso Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Bonso is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Bonso Electronics Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonso Electronics 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 Bonso Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonso Electronics has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Bonso Electronics go up and down completely randomly.
Pair Corralation between Shinhan Financial and Bonso Electronics
If you would invest 3,412 in Shinhan Financial Group on October 24, 2024 and sell it today you would earn a total of 42.00 from holding Shinhan Financial Group or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Shinhan Financial Group vs. Bonso Electronics Internationa
Performance |
| Timeline |
| Shinhan Financial |
| Bonso Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Bonso Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Bonso Electronics
The main advantage of trading using opposite Shinhan Financial and Bonso Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Bonso Electronics 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 Bonso Electronics will offset losses from the drop in Bonso Electronics' 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 |
| Bonso Electronics vs. SaverOne 2014 Ltd | Bonso Electronics vs. Genasys | Bonso Electronics vs. Kraken Robotics | Bonso Electronics vs. Mesa Laboratories |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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