Correlation Between Shinhan Financial and DISH Network

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

Diversification Opportunities for Shinhan Financial and DISH Network

-0.77

Correlation Coefficient

Shinhan Financial  DISH Network

Pay attention - limited upside

The 3 months correlation between Shinhan and DISH is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and DISH Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISH Network 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 DISH Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISH Network has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and DISH Network go up and down completely randomly.

Pair Corralation between Shinhan Financial and DISH Network

If you would invest  3,364  in Shinhan Financial Group on January 31, 2024 and sell it today you would earn a total of  64.00  from holding Shinhan Financial Group or generate 1.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Shinhan Financial Group  vs.  DISH Network

Shinhan Financial

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shinhan Financial Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Shinhan Financial reported solid returns over the last few months and may actually be approaching a breakup point.

DISH Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DISH Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DISH Network is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Shinhan Financial and DISH Network

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

The idea behind Shinhan Financial Group and DISH Network 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.