Correlation Between Shinhan Financial and Kalera Public
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Kalera Public 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 Kalera Public 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 Kalera Public Limited, you can compare the effects of market volatilities on Shinhan Financial and Kalera Public 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 Kalera Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Kalera Public.
Diversification Opportunities for Shinhan Financial and Kalera Public
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Kalera is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Kalera Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalera Public Limited 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 Kalera Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalera Public Limited has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Kalera Public go up and down completely randomly.
Pair Corralation between Shinhan Financial and Kalera Public
If you would invest 3,318 in Shinhan Financial Group on October 28, 2024 and sell it today you would earn a total of 198.00 from holding Shinhan Financial Group or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Shinhan Financial Group vs. Kalera Public Limited
Performance |
| Timeline |
| Shinhan Financial |
| Kalera Public Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Kalera Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Kalera Public
The main advantage of trading using opposite Shinhan Financial and Kalera Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Kalera Public 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 Kalera Public will offset losses from the drop in Kalera Public'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 |
| Kalera Public vs. Global Clean Energy | Kalera Public vs. Limoneira Co | Kalera Public vs. Edible Garden AG | Kalera Public vs. Golden Agri Resources |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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