Correlation Between Shinhan Financial and AcelRx Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and AcelRx Pharmaceuticals 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 AcelRx Pharmaceuticals 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 AcelRx Pharmaceuticals, you can compare the effects of market volatilities on Shinhan Financial and AcelRx Pharmaceuticals 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 AcelRx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and AcelRx Pharmaceuticals.
Diversification Opportunities for Shinhan Financial and AcelRx Pharmaceuticals
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and AcelRx is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and AcelRx Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcelRx Pharmaceuticals 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 AcelRx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcelRx Pharmaceuticals has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and AcelRx Pharmaceuticals go up and down completely randomly.
Pair Corralation between Shinhan Financial and AcelRx Pharmaceuticals
If you would invest 101.00 in AcelRx Pharmaceuticals on August 28, 2024 and sell it today you would earn a total of 0.00 from holding AcelRx Pharmaceuticals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Shinhan Financial Group vs. AcelRx Pharmaceuticals
Performance |
| Timeline |
| Shinhan Financial |
| AcelRx Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and AcelRx Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and AcelRx Pharmaceuticals
The main advantage of trading using opposite Shinhan Financial and AcelRx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, AcelRx Pharmaceuticals 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 AcelRx Pharmaceuticals will offset losses from the drop in AcelRx Pharmaceuticals' long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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