Correlation Between Shinhan Financial and Chandra Asri
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Chandra Asri 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 Chandra Asri 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 Chandra Asri Petrochemical, you can compare the effects of market volatilities on Shinhan Financial and Chandra Asri 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 Chandra Asri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Chandra Asri.
Diversification Opportunities for Shinhan Financial and Chandra Asri
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Chandra is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Chandra Asri Petrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chandra Asri Petroch 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 Chandra Asri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chandra Asri Petroch has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Chandra Asri go up and down completely randomly.
Pair Corralation between Shinhan Financial and Chandra Asri
If you would invest 6,261 in Chandra Asri Petrochemical on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Chandra Asri Petrochemical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Shinhan Financial Group vs. Chandra Asri Petrochemical
Performance |
| Timeline |
| Shinhan Financial |
| Chandra Asri Petroch |
Shinhan Financial and Chandra Asri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Chandra Asri
The main advantage of trading using opposite Shinhan Financial and Chandra Asri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Chandra Asri 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 Chandra Asri will offset losses from the drop in Chandra Asri'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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