Correlation Between Shinhan Financial and UPD Holding
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and UPD Holding 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 UPD Holding 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 UPD Holding Corp, you can compare the effects of market volatilities on Shinhan Financial and UPD Holding 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 UPD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and UPD Holding.
Diversification Opportunities for Shinhan Financial and UPD Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and UPD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and UPD Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPD Holding 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 UPD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPD Holding Corp has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and UPD Holding go up and down completely randomly.
Pair Corralation between Shinhan Financial and UPD Holding
If you would invest 3,325 in Shinhan Financial Group on September 3, 2024 and sell it today you would earn a total of 533.00 from holding Shinhan Financial Group or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. UPD Holding Corp
Performance |
| Timeline |
| Shinhan Financial |
| UPD Holding Corp |
Shinhan Financial and UPD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and UPD Holding
The main advantage of trading using opposite Shinhan Financial and UPD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, UPD Holding 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 UPD Holding will offset losses from the drop in UPD Holding's long position.| Shinhan Financial vs. JPMorgan Chase Co | Shinhan Financial vs. Citigroup | Shinhan Financial vs. Wells Fargo | Shinhan Financial vs. Toronto Dominion Bank |
| UPD Holding vs. Federal National Mortgage | UPD Holding vs. Shinhan Financial Group | UPD Holding vs. Woori Financial Group | UPD Holding vs. Grupo Aval |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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