Correlation Between Shinhan Financial and OM Holdings
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and OM Holdings 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 OM Holdings 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 OM Holdings Limited, you can compare the effects of market volatilities on Shinhan Financial and OM Holdings 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 OM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and OM Holdings.
Diversification Opportunities for Shinhan Financial and OM Holdings
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and OMHLF is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and OM Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OM Holdings 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 OM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OM Holdings Limited has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and OM Holdings go up and down completely randomly.
Pair Corralation between Shinhan Financial and OM Holdings
If you would invest 3,933 in Shinhan Financial Group on August 31, 2024 and sell it today you would earn a total of 93.00 from holding Shinhan Financial Group or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. OM Holdings Limited
Performance |
| Timeline |
| Shinhan Financial |
| OM Holdings Limited |
Shinhan Financial and OM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and OM Holdings
The main advantage of trading using opposite Shinhan Financial and OM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, OM Holdings 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 OM Holdings will offset losses from the drop in OM Holdings' 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 |
| OM Holdings vs. Sherritt International | OM Holdings vs. AMG Advanced Metallurgical | OM Holdings vs. Metals X Limited | OM Holdings vs. Interra Copper Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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