Foreign Regional Bank Stocks Expected To Be Higher After 5 of Top 6 Correlated Stocks Fire Buy Signal.
June 29, 2009 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the top 6 most highly correlated Foreign Regional Bank stocks and 83% of them have fired a buy signal as of June 29th, 2009. Shinhan Financial (NYSE: SHG), HDFC Bank (NYSE: HDB), KB Financial (NYSE: KB), Woori Finance (NYSE: WF) and BBVA Banco Frances (NYSE: BFR) are all expected to be higher as 5 of the top 6 stocks in the sector have fired a buy signal. Group rotation is a phenomenon where institutions exert buying or selling pressure in an industry group, pushing prices of the group higher or higher relative to the general market. An industry can often lead or lag the market, and the most highly correlated stocks (mirror closest to the overall move in that group) usually move in unison. The technology used to make these predictions is available for a low monthly fee at http://www.squeezetrigger.com/services/strat/mh.php . The chart below displays the correlation, beta and relative strength of the top 6 most highly correlated stocks in the highlighted industry group:
Name Symbol Correlation Beta RelStr Sector
SHINHAN FINANCIAL GR SHG 0.92 0.98 1.03 Foreign Regional Banks
HDFC BANK LTD ADS HDB 0.89 1.08 0.97 Foreign Regional Banks
KB FINANCIAL GROUP ADR KB 0.88 1.19 1 Foreign Regional Banks
WOORI FINANCE HLDGS LTD WF 0.87 1.3 1.02 Foreign Regional Banks
BBVA BANCO FRANCES SA BFR 0.85 0.27 1 Foreign Regional Banks
We automatically calculate correlation to help find the stocks that most closely match their group�s movement and generate powerful group consensus trading signals to profit from the herd mentality. When multiple stocks in a group turn at the same time and the rotation of that group is confirmed, an explosive move typically occurs. Correlation measures the tendency for a symbol to move in unison with the group, beta measures the amount the symbol is expected to move relative to the group and relative strength looks back at the recent past to show how the stock has been moving relative to the group.
The chart below looks at average seasonal moves (Seasonality) over the past 5 years of the stocks mentioned above and predicts an expected move up or down based on the odds (# of times it has happened in the past). Foreign Regional Bank stocks are seasonally +2.3% in July, -0.7% in August, +1.1% in September on average.
CLICK TO VIEW GRAPH:
Shinhan Financial Group Co., Ltd. (NYSE: SHG), through its subsidiaries, offers various financial products and services to corporations, governments, institutions, and individuals. It accepts demand deposits, time deposits, mutual installment deposits, savings deposits, marketable deposits, and foreign currency deposits, as well as housing subscription time and installment savings deposits; and provides lending products that include mortgage and home-equity loans, and other consumer loans. The company also offers working capital loans, which include discounted notes and trade financing; and facilities loans to finance the purchase of equipment and the establishment of manufacturing won-denominated plants to corporate customers. It provides investment banking services that comprise participation and administration of syndicated loans and project financings; and offers advisory services in the areas of highway, port, power and water, and sewage projects, as well as involves in equity and venture financing, real estate financing, and mergers and acquisitions advice. In addition, it provides leasing and equipment financing, as well as securities brokerage services, which include equity and bond brokerage, and financial planning services to retail customers; and offers brokerage of corporate bonds, futures, and options to institutional customers. Further, the company involves in treasury and securities investment business; trust account management services; credit card services; and asset management and investment trust, and regional banking services. Additionally, it offers life insurance and other insurance-related products and services; and debt collection and credit reporting services. The company operates 1,007 branches in Korea. Shinhan Financial Group operates in South Korea, the United States, the United Kingdom, Japan, China, Germany, India, Hong Kong, Vietnam, and Singapore. The company was founded in 1982 and is headquartered in Seoul, South Korea.
HDFC Bank Limited (NYSE: HDB) provides various financial products and services. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking segment provides various deposit products, including savings accounts, current accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial vehicle, home, gold, and educational loans; loans against securities, property, and rental receivables; and health care finance working capital finance, construction equipment finance, and warehouse receipt loans, as well as credit cards, debit cards, depository, investment advisory, bill payments, and transactional services. In addition, this segment sells third party financial products, such as mutual funds and insurance, as well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. The wholesale banking segment provides loans, non-fund facilities, and transaction services to large corporate, emerging corporate, small and medium enterprise, supply chain, public sector undertaking, central and state government departments, and institutional customers. It offers deposit and transaction banking products, supply chain financing, working capital and term finance, agricultural loans, and funded, non-funded treasury, and foreign exchange products. This segment�s services include trade services, cash management, money market, custodial, tax collection, and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks, and regional rural banks; and wealth management products for non-resident Indians. The Treasury Services segment operates primarily in areas, such as foreign exchange, money market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412 branches and 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 and is based in Mumbai, India.
KB Financial Group (NYSE: KB), holding company for Kookmin Bank, provides commercial and consumer banking services in South Korea. It offers asset management and life insurance through alliances with Netherlands-based ING Groep. The bank's lending activities mainly entail residential mortgages, home equity loans, consumer loans, and corporate loans. Kookmin Bank has more than 1,200 branches in its home country, where it claims some 26 million customers, or about half of the population of South Korea. The bank provides corporate services such as foreign exchange and securities trading from offices at home and abroad in New York, London, Hong Kong, Tokyo, and Auckland, New Zealand.
Woori Finance Holdings Co., Ltd. (NYSE: WF), a financial holding company, offers a range of banking and financial products and services in South Korea. It offers corporate banking products and services, including loans, such as working capital loans and facilities loans; deposits comprising demand deposits, time deposits, installment deposits, certificates of deposit, and repurchase instruments; and inter-account transfers and transfers of funds. The company also offers consumer banking products and services, which include deposit products, such as time, demand, savings, and installment deposits, as well as certificates of deposit; credit cards, general purpose household loans, mortgage loans, and home equity loans; loans to contractors for working capital purposes, purchase of property, and construction of housing units; loans to educational institutions and non-profit entities to finance the construction of dormitories; banking products and services for high net worth individuals; and Internet, telephone, and mobile banking services. In addition, Woori Finance engages in capital market activities, including securities investment and trading, derivatives trading, asset securitization, investment banking, and securities brokerage. Additionally, it offers asset management services; trust management products, including retirement, pension, and specified money trusts; investment trust management products, such as equity, fixed income, hybrid, money market, and alternative investment funds; and trustee and custodian services relating to securities investment trusts. Further, the company provides merchant banking and bancassurance services; and engages in the management of national housing fund. As of December 31, 2007, it operated 1,144 branches and 8,416 ATMs in Korea. The company was founded in 2001 and is headquartered in Seoul, South Korea. Woori Finance Holdings Co., Ltd. operates as a subsidiary of Korea Deposit Insurance Corporation.
BBVA Banco Frances S.A. (NYSE: BFR), together with its subsidiaries, provides financial services to large corporations, medium and small companies, and individuals in the Republic of Argentina. The company�s deposit products include checking accounts, savings accounts, time deposits, and investment accounts. Its loan portfolio comprises consumer financing, focusing primarily on credit cards; working capital loans and leasing, including Visa business cards; mutual funds; and mortgage loans. The company also manages payroll accounts; and offers asset management services, as well as involves in the provision of insurance advisory services to customers in the areas of coverage of risks related to life, personal accidents and home insurance, and ATM�s robbery insurance, within a range of products offered by certain insurance companies. In addition, it offers foreign trade services, including letters of credit, collections, bank drafts, fund transfers, and foreign currency transactions. Further, the company provides electronic banking, automated teller machine, self-service terminal, Internet and mobile banking, call center, and trust banking services. BBVA Banco Frances S.A. also engages in capital markets and securities activities, principally underwriting and placement of corporate bonds, commercial paper, and equity securities. As of March 31, 2009, it operated a network of 270 offices, including 239 consumer branch offices, 27 branch offices specialized in the middle-market segment, 14 in-company branches, 4 branch offices for large corporate and institutional clients, and 3 points of sale. The company was formerly known as Banco Frances S.A. and changed its name to BBVA Banco Frances S.A. in October 2000. The company was founded in 1886 and is based in Buenos Aires, the Republic of Argentina. BBVA Banco Frances S.A. operates as a subsidiary of Banco Bilbao Vizcaya Argentaria S.A.
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