Correlation Between Shinhan Financial and ViewRay

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

Diversification Opportunities for Shinhan Financial and ViewRay

0.82

Correlation Coefficient

Shinhan Financial  ViewRay

Very poor diversification

The 3 months correlation between Shinhan and ViewRay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and ViewRay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViewRay 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 ViewRay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViewRay has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and ViewRay go up and down completely randomly.

Pair Corralation between Shinhan Financial and ViewRay

If you would invest  2,647  in Shinhan Financial Group on September 28, 2024 and sell it today you would earn a total of  666.50  from holding Shinhan Financial Group or generate 25.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	0.37%
Values	Daily Returns

Shinhan Financial Group  vs.  ViewRay

Shinhan Financial

Risk-Adjusted Performance

0 of 100

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 January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ViewRay

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ViewRay has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, ViewRay is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Shinhan Financial and ViewRay

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

The idea behind Shinhan Financial Group and ViewRay 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.