Correlation Between Shinhan Financial and Mullen Group
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Mullen Group 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 Mullen Group 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 Mullen Group, you can compare the effects of market volatilities on Shinhan Financial and Mullen Group 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 Mullen Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Mullen Group.
Diversification Opportunities for Shinhan Financial and Mullen Group
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Mullen is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Mullen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Group 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 Mullen Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Group has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Mullen Group go up and down completely randomly.
Pair Corralation between Shinhan Financial and Mullen Group
Considering the 90-day investment horizon Shinhan Financial Group is expected to under-perform the Mullen Group. In addition to that, Shinhan Financial is 2.23 times more volatile than Mullen Group. It trades about -0.03 of its total potential returns per unit of risk. Mullen Group is currently generating about 0.06 per unit of volatility. If you would invest 1,085 in Mullen Group on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Mullen Group or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shinhan Financial Group vs. Mullen Group
Performance |
| Timeline |
| Shinhan Financial |
| Mullen Group |
Shinhan Financial and Mullen Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Mullen Group
The main advantage of trading using opposite Shinhan Financial and Mullen Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Mullen Group 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 Mullen Group will offset losses from the drop in Mullen Group'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 |
| Mullen Group vs. ArcBest Corp | Mullen Group vs. Old Dominion Freight | Mullen Group vs. Saia Inc | Mullen Group vs. XPO Logistics |
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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