Technical question about adding shodows to a BG plate

I was watching this tutorial about compositing CG passes to a plate and in the video showed a way to add the shadows that got thinking about what is technically correct.

When I add my shadows to a plate I use an alpha mask to drive a color corrector and I color correct the BG plate to create a shadow of my CG.

In this tutorial, it showed that a constant guizmo colored with the shadow values was masked by an alpha and then put over the BG plate.

So I’m wondering as to which way is technically correct?

Thanks for the help!

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