Correlation Between Shinhan Financial and Weber
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Weber 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 Weber 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 Weber Inc, you can compare the effects of market volatilities on Shinhan Financial and Weber 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 Weber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Weber.
Diversification Opportunities for Shinhan Financial and Weber
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Weber is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Weber Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weber Inc 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 Weber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weber Inc has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Weber go up and down completely randomly.
Pair Corralation between Shinhan Financial and Weber
If you would invest 812.00 in Weber Inc on October 1, 2024 and sell it today you would earn a total of 0.00 from holding Weber Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Shinhan Financial Group vs. Weber Inc
Performance |
| Timeline |
| Shinhan Financial |
| Weber Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Weber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Weber
The main advantage of trading using opposite Shinhan Financial and Weber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Weber 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 Weber will offset losses from the drop in Weber's long position.The idea behind Shinhan Financial Group and Weber Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Weber vs. SFL Corporation | Weber vs. Papaya Growth Opportunity | Weber vs. NetSol Technologies | Weber vs. Griffon |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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