Correlation Between Shinhan Financial and Bowmo
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Bowmo 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 Bowmo 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 Bowmo Inc, you can compare the effects of market volatilities on Shinhan Financial and Bowmo 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 Bowmo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Bowmo.
Diversification Opportunities for Shinhan Financial and Bowmo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Bowmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Bowmo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowmo Inc 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 Bowmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowmo Inc has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Bowmo go up and down completely randomly.
Pair Corralation between Shinhan Financial and Bowmo
If you would invest 0.00 in Bowmo Inc on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Bowmo Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Shinhan Financial Group vs. Bowmo Inc
Performance |
| Timeline |
| Shinhan Financial |
| Bowmo Inc |
Shinhan Financial and Bowmo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Bowmo
The main advantage of trading using opposite Shinhan Financial and Bowmo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Bowmo 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 Bowmo will offset losses from the drop in Bowmo's long position.| Shinhan Financial vs. Community West Bancshares | Shinhan Financial vs. First Financial Northwest | Shinhan Financial vs. Finwise Bancorp | Shinhan Financial vs. Magyar Bancorp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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