Correlation Between Shinhan Financial and Phenom Resources
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Phenom Resources 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 Phenom Resources 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 Phenom Resources Corp, you can compare the effects of market volatilities on Shinhan Financial and Phenom Resources 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 Phenom Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Phenom Resources.
Diversification Opportunities for Shinhan Financial and Phenom Resources
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Phenom is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Phenom Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phenom Resources 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 Phenom Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phenom Resources Corp has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Phenom Resources go up and down completely randomly.
Pair Corralation between Shinhan Financial and Phenom Resources
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.44 times more return on investment than Phenom Resources. However, Shinhan Financial Group is 2.29 times less risky than Phenom Resources. It trades about 0.06 of its potential returns per unit of risk. Phenom Resources Corp is currently generating about -0.34 per unit of risk. If you would invest 3,782 in Shinhan Financial Group on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Shinhan Financial Group or generate 2.01% 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. Phenom Resources Corp
Performance |
| Timeline |
| Shinhan Financial |
| Phenom Resources Corp |
Shinhan Financial and Phenom Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Phenom Resources
The main advantage of trading using opposite Shinhan Financial and Phenom Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Phenom Resources 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 Phenom Resources will offset losses from the drop in Phenom Resources' long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| Phenom Resources vs. Aurion Resources | Phenom Resources vs. Rio2 Limited | Phenom Resources vs. Palamina Corp | Phenom Resources vs. BTU Metals 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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