Correlation Between Shinhan Financial and Evolve Transition
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Evolve Transition 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 Evolve Transition 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 Evolve Transition Infrastructure, you can compare the effects of market volatilities on Shinhan Financial and Evolve Transition 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 Evolve Transition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Evolve Transition.
Diversification Opportunities for Shinhan Financial and Evolve Transition
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Evolve is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Evolve Transition Infrastructu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Transition 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 Evolve Transition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Transition has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Evolve Transition go up and down completely randomly.
Pair Corralation between Shinhan Financial and Evolve Transition
Considering the 90-day investment horizon Shinhan Financial is expected to generate 54.42 times less return on investment than Evolve Transition. But when comparing it to its historical volatility, Shinhan Financial Group is 43.31 times less risky than Evolve Transition. It trades about 0.05 of its potential returns per unit of risk. Evolve Transition Infrastructure is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 413.00 in Evolve Transition Infrastructure on August 26, 2024 and sell it today you would lose (368.00) from holding Evolve Transition Infrastructure or give up 89.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 28.93% |
| Values | Daily Returns |
Shinhan Financial Group vs. Evolve Transition Infrastructu
Performance |
| Timeline |
| Shinhan Financial |
| Evolve Transition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Evolve Transition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Evolve Transition
The main advantage of trading using opposite Shinhan Financial and Evolve Transition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Evolve Transition 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 Evolve Transition will offset losses from the drop in Evolve Transition's long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| Evolve Transition vs. Imperial Petroleum Preferred | Evolve Transition vs. Scorpio Tankers | Evolve Transition vs. Frontline | Evolve Transition vs. CBL International Limited |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |