Correlation Between Shinhan Financial and Tellurian
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Tellurian 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 Tellurian 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 Tellurian, you can compare the effects of market volatilities on Shinhan Financial and Tellurian 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 Tellurian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Tellurian.
Diversification Opportunities for Shinhan Financial and Tellurian
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Tellurian is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Tellurian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tellurian 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 Tellurian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tellurian has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Tellurian go up and down completely randomly.
Pair Corralation between Shinhan Financial and Tellurian
Considering the 90-day investment horizon Shinhan Financial is expected to generate 1.33 times less return on investment than Tellurian. But when comparing it to its historical volatility, Shinhan Financial Group is 3.88 times less risky than Tellurian. It trades about 0.07 of its potential returns per unit of risk. Tellurian is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Tellurian on August 30, 2024 and sell it today you would lose (36.00) from holding Tellurian or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.12% |
| Values | Daily Returns |
Shinhan Financial Group vs. Tellurian
Performance |
| Timeline |
| Shinhan Financial |
| Tellurian |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Shinhan Financial and Tellurian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Tellurian
The main advantage of trading using opposite Shinhan Financial and Tellurian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Tellurian 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 Tellurian will offset losses from the drop in Tellurian'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 |
| Tellurian vs. Epsilon Energy | Tellurian vs. GeoPark | Tellurian vs. Kosmos Energy | Tellurian vs. PEDEVCO 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |