Correlation Between Shinhan Financial and Global Clean
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Global Clean 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 Global Clean 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 Global Clean Energy, you can compare the effects of market volatilities on Shinhan Financial and Global Clean 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 Global Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Global Clean.
Diversification Opportunities for Shinhan Financial and Global Clean
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Global is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Global Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Clean Energy 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 Global Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Clean Energy has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Global Clean go up and down completely randomly.
Pair Corralation between Shinhan Financial and Global Clean
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.2 times more return on investment than Global Clean. However, Shinhan Financial Group is 5.07 times less risky than Global Clean. It trades about 0.2 of its potential returns per unit of risk. Global Clean Energy is currently generating about -0.42 per unit of risk. If you would invest 3,366 in Shinhan Financial Group on October 26, 2024 and sell it today you would earn a total of 169.50 from holding Shinhan Financial Group or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Global Clean Energy
Performance |
| Timeline |
| Shinhan Financial |
| Global Clean Energy |
Shinhan Financial and Global Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Global Clean
The main advantage of trading using opposite Shinhan Financial and Global Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Global Clean 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 Global Clean will offset losses from the drop in Global Clean'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 |
| Global Clean vs. Edible Garden AG | Global Clean vs. Golden Agri Resources | Global Clean vs. Local Bounti Corp | Global Clean vs. Village Farms International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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