Correlation Between Shinhan Financial and Atec
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Atec 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 Atec 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 Atec Inc, you can compare the effects of market volatilities on Shinhan Financial and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Atec.
Diversification Opportunities for Shinhan Financial and Atec
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Atec is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Atec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec Inc 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec Inc has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Atec go up and down completely randomly.
Pair Corralation between Shinhan Financial and Atec
Considering the 90-day investment horizon Shinhan Financial Group is expected to under-perform the Atec. In addition to that, Shinhan Financial is 7.38 times more volatile than Atec Inc. It trades about -0.07 of its total potential returns per unit of risk. Atec Inc is currently generating about 0.12 per unit of volatility. If you would invest 2,100 in Atec Inc on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Atec Inc or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Shinhan Financial Group vs. Atec Inc
Performance |
| Timeline |
| Shinhan Financial |
| Atec Inc |
Shinhan Financial and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Atec
The main advantage of trading using opposite Shinhan Financial and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Shinhan Financial vs. JPMorgan Chase Co | Shinhan Financial vs. Citigroup | Shinhan Financial vs. Wells Fargo | Shinhan Financial vs. Toronto Dominion Bank |
| Atec vs. Franklin Credit Management | Atec vs. PennantPark Floating Rate | Atec vs. Logan Ridge Finance | Atec vs. Waste Management |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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