Correlation Between Shinhan Financial and Nogin

Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Nogin 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 Nogin 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 Nogin Inc, you can compare the effects of market volatilities on Shinhan Financial and Nogin 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 Nogin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Nogin.

Diversification Opportunities for Shinhan Financial and Nogin

0.0

Correlation Coefficient

Shinhan Financial  Nogin

Pay attention - limited upside

The 3 months correlation between Shinhan and Nogin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Nogin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nogin 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 Nogin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nogin Inc has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Nogin go up and down completely randomly.

Pair Corralation between Shinhan Financial and Nogin

Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.12 times more return on investment than Nogin. However, Shinhan Financial Group is 8.24 times less risky than Nogin. It trades about 0.02 of its potential returns per unit of risk. Nogin Inc is currently generating about -0.06 per unit of risk. If you would invest  3,108  in Shinhan Financial Group on October 9, 2024 and sell it today you would earn a total of  259.00  from holding Shinhan Financial Group or generate 8.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	26.26%
Values	Daily Returns

Shinhan Financial Group  vs.  Nogin Inc

Shinhan Financial

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Shinhan Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Nogin Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nogin Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Nogin is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Shinhan Financial and Nogin

The main advantage of trading using opposite Shinhan Financial and Nogin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Nogin 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 Nogin will offset losses from the drop in Nogin's long position.

The idea behind Shinhan Financial Group and Nogin 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.