Correlation Between Shinhan Financial and Kontrol Technologies
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Kontrol Technologies 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 Kontrol Technologies 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 Kontrol Technologies Corp, you can compare the effects of market volatilities on Shinhan Financial and Kontrol Technologies 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 Kontrol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Kontrol Technologies.
Diversification Opportunities for Shinhan Financial and Kontrol Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Kontrol is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Kontrol Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrol Technologies Corp 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 Kontrol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrol Technologies Corp has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Kontrol Technologies go up and down completely randomly.
Pair Corralation between Shinhan Financial and Kontrol Technologies
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.34 times more return on investment than Kontrol Technologies. However, Shinhan Financial Group is 2.92 times less risky than Kontrol Technologies. It trades about 0.07 of its potential returns per unit of risk. Kontrol Technologies Corp is currently generating about 0.0 per unit of risk. If you would invest 3,283 in Shinhan Financial Group on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Shinhan Financial Group or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Kontrol Technologies Corp
Performance |
| Timeline |
| Shinhan Financial |
| Kontrol Technologies Corp |
Shinhan Financial and Kontrol Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Kontrol Technologies
The main advantage of trading using opposite Shinhan Financial and Kontrol Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Kontrol Technologies 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 Kontrol Technologies will offset losses from the drop in Kontrol Technologies' 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 |
| Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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