Correlation Between Shinhan Financial and Cue Health
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Cue Health 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 Cue Health 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 Cue Health, you can compare the effects of market volatilities on Shinhan Financial and Cue Health 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 Cue Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Cue Health.
Diversification Opportunities for Shinhan Financial and Cue Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Cue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Cue Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Health 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 Cue Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Health has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Cue Health go up and down completely randomly.
Pair Corralation between Shinhan Financial and Cue Health
If you would invest 3,782 in Shinhan Financial Group on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Shinhan Financial Group or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Cue Health
Performance |
| Timeline |
| Shinhan Financial |
| Cue Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Cue Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Cue Health
The main advantage of trading using opposite Shinhan Financial and Cue Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Cue Health 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 Cue Health will offset losses from the drop in Cue Health'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 |
| Cue Health vs. CareMax | Cue Health vs. Premier | Cue Health vs. HealthStream | Cue Health vs. EUDA Health Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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