Correlation Between Shinhan Financial and JSR
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and JSR 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 JSR 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 JSR Corporation, you can compare the effects of market volatilities on Shinhan Financial and JSR 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 JSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and JSR.
Diversification Opportunities for Shinhan Financial and JSR
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and JSR is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and JSR Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSR Corporation 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 JSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSR Corporation has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and JSR go up and down completely randomly.
Pair Corralation between Shinhan Financial and JSR
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 6.26 times more return on investment than JSR. However, Shinhan Financial is 6.26 times more volatile than JSR Corporation. It trades about 0.08 of its potential returns per unit of risk. JSR Corporation is currently generating about 0.09 per unit of risk. If you would invest 2,668 in Shinhan Financial Group on September 2, 2024 and sell it today you would earn a total of 1,190 from holding Shinhan Financial Group or generate 44.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 54.84% |
| Values | Daily Returns |
Shinhan Financial Group vs. JSR Corp.
Performance |
| Timeline |
| Shinhan Financial |
| JSR Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and JSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and JSR
The main advantage of trading using opposite Shinhan Financial and JSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, JSR 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 JSR will offset losses from the drop in JSR'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 |
| JSR vs. Chemours Co | JSR vs. International Flavors Fragrances | JSR vs. Air Products and | JSR vs. PPG Industries |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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