Correlation Between Shinhan Financial and Ocugen
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Ocugen 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 Ocugen 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 Ocugen Inc, you can compare the effects of market volatilities on Shinhan Financial and Ocugen 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 Ocugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Ocugen.
Diversification Opportunities for Shinhan Financial and Ocugen
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinhan and Ocugen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Ocugen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocugen Inc 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 Ocugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocugen Inc has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Ocugen go up and down completely randomly.
Pair Corralation between Shinhan Financial and Ocugen
Considering the 90-day investment horizon Shinhan Financial is expected to generate 2.71 times less return on investment than Ocugen. But when comparing it to its historical volatility, Shinhan Financial Group is 2.81 times less risky than Ocugen. It trades about 0.07 of its potential returns per unit of risk. Ocugen Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Ocugen Inc on August 31, 2024 and sell it today you would earn a total of 52.00 from holding Ocugen Inc or generate 113.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Ocugen Inc
Performance |
| Timeline |
| Shinhan Financial |
| Ocugen Inc |
Shinhan Financial and Ocugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Ocugen
The main advantage of trading using opposite Shinhan Financial and Ocugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Ocugen 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 Ocugen will offset losses from the drop in Ocugen'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 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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