Correlation Between Shinhan Financial and Green Plains
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Green Plains 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 Green Plains 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 Green Plains Partners, you can compare the effects of market volatilities on Shinhan Financial and Green Plains 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 Green Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Green Plains.
Diversification Opportunities for Shinhan Financial and Green Plains
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Green is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Green Plains Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Plains Partners 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 Green Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Plains Partners has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Green Plains go up and down completely randomly.
Pair Corralation between Shinhan Financial and Green Plains
If you would invest 1,416 in Green Plains Partners on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Green Plains Partners or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Shinhan Financial Group vs. Green Plains Partners
Performance |
| Timeline |
| Shinhan Financial |
| Green Plains Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Green Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Green Plains
The main advantage of trading using opposite Shinhan Financial and Green Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Green Plains 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 Green Plains will offset losses from the drop in Green Plains' long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| Green Plains vs. Plains All American | Green Plains vs. Genesis Energy LP | Green Plains vs. Western Midstream Partners | Green Plains vs. Hess Midstream Partners |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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