Correlation Between Shinhan Financial and Gncc Capital
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Gncc Capital 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 Gncc Capital 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 Gncc Capital, you can compare the effects of market volatilities on Shinhan Financial and Gncc Capital 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 Gncc Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Gncc Capital.
Diversification Opportunities for Shinhan Financial and Gncc Capital
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Gncc is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Gncc Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gncc Capital 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 Gncc Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gncc Capital has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Gncc Capital go up and down completely randomly.
Pair Corralation between Shinhan Financial and Gncc Capital
Considering the 90-day investment horizon Shinhan Financial is expected to generate 17.03 times less return on investment than Gncc Capital. But when comparing it to its historical volatility, Shinhan Financial Group is 25.59 times less risky than Gncc Capital. It trades about 0.07 of its potential returns per unit of risk. Gncc Capital is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Gncc Capital on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Gncc Capital or generate 0.0% 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. Gncc Capital
Performance |
| Timeline |
| Shinhan Financial |
| Gncc Capital |
Shinhan Financial and Gncc Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Gncc Capital
The main advantage of trading using opposite Shinhan Financial and Gncc Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Gncc Capital 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 Gncc Capital will offset losses from the drop in Gncc Capital's long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| Gncc Capital vs. Aurion Resources | Gncc Capital vs. Liberty Gold Corp | Gncc Capital vs. Orezone Gold Corp | Gncc Capital vs. Fortuna Silver Mines |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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