Correlation Between Shinhan Financial and Arcellx
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Arcellx 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 Arcellx 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 Arcellx, you can compare the effects of market volatilities on Shinhan Financial and Arcellx 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 Arcellx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Arcellx.
Diversification Opportunities for Shinhan Financial and Arcellx
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Arcellx is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Arcellx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcellx 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 Arcellx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcellx has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Arcellx go up and down completely randomly.
Pair Corralation between Shinhan Financial and Arcellx
Considering the 90-day investment horizon Shinhan Financial is expected to generate 1.43 times less return on investment than Arcellx. But when comparing it to its historical volatility, Shinhan Financial Group is 1.85 times less risky than Arcellx. It trades about 0.06 of its potential returns per unit of risk. Arcellx is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,681 in Arcellx on August 31, 2024 and sell it today you would earn a total of 226.00 from holding Arcellx or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Arcellx
Performance |
| Timeline |
| Shinhan Financial |
| Arcellx |
Shinhan Financial and Arcellx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Arcellx
The main advantage of trading using opposite Shinhan Financial and Arcellx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Arcellx 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 Arcellx will offset losses from the drop in Arcellx's long position.| Shinhan Financial vs. Community West Bancshares | Shinhan Financial vs. First Financial Northwest | Shinhan Financial vs. Ponce Financial Group | Shinhan Financial vs. Finwise Bancorp |
| Arcellx vs. Nuvalent | Arcellx vs. Ventyx Biosciences | Arcellx vs. Amylyx Pharmaceuticals | Arcellx vs. Day One Biopharmaceuticals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |