Correlation Between Shinhan Financial and Trucept
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Trucept 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 Trucept 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 Trucept, you can compare the effects of market volatilities on Shinhan Financial and Trucept 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 Trucept. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Trucept.
Diversification Opportunities for Shinhan Financial and Trucept
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Trucept is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Trucept in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trucept 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 Trucept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trucept has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Trucept go up and down completely randomly.
Pair Corralation between Shinhan Financial and Trucept
Considering the 90-day investment horizon Shinhan Financial is expected to generate 3.58 times less return on investment than Trucept. But when comparing it to its historical volatility, Shinhan Financial Group is 4.6 times less risky than Trucept. It trades about 0.07 of its potential returns per unit of risk. Trucept is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4.50 in Trucept on August 25, 2024 and sell it today you would earn a total of 0.39 from holding Trucept or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Trucept
Performance |
| Timeline |
| Shinhan Financial |
| Trucept |
Shinhan Financial and Trucept Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Trucept
The main advantage of trading using opposite Shinhan Financial and Trucept positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Trucept 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 Trucept will offset losses from the drop in Trucept'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 |
| Trucept vs. The Caldwell Partners | Trucept vs. Randstad Holdings NV | Trucept vs. Futuris Company | Trucept vs. Hire Technologies |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |