Correlation Between Shinhan Financial and Creek Road
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Creek Road 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 Creek Road 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 Creek Road Miners, you can compare the effects of market volatilities on Shinhan Financial and Creek Road 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 Creek Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Creek Road.
Diversification Opportunities for Shinhan Financial and Creek Road
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Creek is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Creek Road Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creek Road Miners 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 Creek Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creek Road Miners has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Creek Road go up and down completely randomly.
Pair Corralation between Shinhan Financial and Creek Road
Considering the 90-day investment horizon Shinhan Financial is expected to generate 23.99 times less return on investment than Creek Road. But when comparing it to its historical volatility, Shinhan Financial Group is 9.58 times less risky than Creek Road. It trades about 0.05 of its potential returns per unit of risk. Creek Road Miners is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9.50 in Creek Road Miners on September 2, 2024 and sell it today you would earn a total of 13.50 from holding Creek Road Miners or generate 142.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.05% |
| Values | Daily Returns |
Shinhan Financial Group vs. Creek Road Miners
Performance |
| Timeline |
| Shinhan Financial |
| Creek Road Miners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Creek Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Creek Road
The main advantage of trading using opposite Shinhan Financial and Creek Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Creek Road 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 Creek Road will offset losses from the drop in Creek Road'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 |
| Creek Road vs. Cryomass Technologies | Creek Road vs. Global Helium Corp | Creek Road vs. Optimi Health Corp | Creek Road vs. Draganfly |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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