Correlation Between Shinhan Financial and CRH Plc
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and CRH Plc 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 CRH Plc 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 CRH Plc, you can compare the effects of market volatilities on Shinhan Financial and CRH Plc 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 CRH Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and CRH Plc.
Diversification Opportunities for Shinhan Financial and CRH Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and CRH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and CRH Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRH Plc 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 CRH Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRH Plc has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and CRH Plc go up and down completely randomly.
Pair Corralation between Shinhan Financial and CRH Plc
If you would invest 2,384 in Shinhan Financial Group on December 4, 2024 and sell it today you would earn a total of 796.00 from holding Shinhan Financial Group or generate 33.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Shinhan Financial Group vs. CRH Plc
Performance |
Timeline |
Shinhan Financial |
CRH Plc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Shinhan Financial and CRH Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinhan Financial and CRH Plc
The main advantage of trading using opposite Shinhan Financial and CRH Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, CRH Plc 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 CRH Plc will offset losses from the drop in CRH Plc'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 |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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