Correlation Between Shinhan Financial and Surge Copper
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Surge Copper 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 Surge Copper 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 Surge Copper Corp, you can compare the effects of market volatilities on Shinhan Financial and Surge Copper 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 Surge Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Surge Copper.
Diversification Opportunities for Shinhan Financial and Surge Copper
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shinhan and Surge is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Surge Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Copper 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 Surge Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Copper Corp has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Surge Copper go up and down completely randomly.
Pair Corralation between Shinhan Financial and Surge Copper
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.41 times more return on investment than Surge Copper. However, Shinhan Financial Group is 2.46 times less risky than Surge Copper. It trades about 0.07 of its potential returns per unit of risk. Surge Copper Corp is currently generating about -0.07 per unit of risk. If you would invest 3,393 in Shinhan Financial Group on August 26, 2024 and sell it today you would earn a total of 582.00 from holding Shinhan Financial Group or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Surge Copper Corp
Performance |
| Timeline |
| Shinhan Financial |
| Surge Copper Corp |
Shinhan Financial and Surge Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Surge Copper
The main advantage of trading using opposite Shinhan Financial and Surge Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Surge Copper 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 Surge Copper will offset losses from the drop in Surge Copper'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 |
| Surge Copper vs. Norra Metals Corp | Surge Copper vs. ZincX Resources Corp | Surge Copper vs. Nuinsco Resources Limited | Surge Copper vs. Mundoro Capital |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |