Correlation Between Shinhan Financial and Wienerberger Baustoffindustri
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Wienerberger Baustoffindustri 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 Wienerberger Baustoffindustri 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 Wienerberger Baustoffindustrie, you can compare the effects of market volatilities on Shinhan Financial and Wienerberger Baustoffindustri 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 Wienerberger Baustoffindustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Wienerberger Baustoffindustri.
Diversification Opportunities for Shinhan Financial and Wienerberger Baustoffindustri
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinhan and Wienerberger is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Wienerberger Baustoffindustrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wienerberger Baustoffindustri 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 Wienerberger Baustoffindustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wienerberger Baustoffindustri has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Wienerberger Baustoffindustri go up and down completely randomly.
Pair Corralation between Shinhan Financial and Wienerberger Baustoffindustri
Considering the 90-day investment horizon Shinhan Financial Group is expected to under-perform the Wienerberger Baustoffindustri. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Financial Group is 2.47 times less risky than Wienerberger Baustoffindustri. The stock trades about -0.25 of its potential returns per unit of risk. The Wienerberger Baustoffindustrie is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 576.00 in Wienerberger Baustoffindustrie on November 28, 2024 and sell it today you would earn a total of 51.00 from holding Wienerberger Baustoffindustrie or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Wienerberger Baustoffindustrie
Performance |
| Timeline |
| Shinhan Financial |
| Wienerberger Baustoffindustri |
Shinhan Financial and Wienerberger Baustoffindustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Wienerberger Baustoffindustri
The main advantage of trading using opposite Shinhan Financial and Wienerberger Baustoffindustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Wienerberger Baustoffindustri 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 Wienerberger Baustoffindustri will offset losses from the drop in Wienerberger Baustoffindustri'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 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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