Correlation Between Shinhan Financial and Alterity Therapeutics
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Alterity Therapeutics 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 Alterity Therapeutics 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 Alterity Therapeutics, you can compare the effects of market volatilities on Shinhan Financial and Alterity Therapeutics 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 Alterity Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Alterity Therapeutics.
Diversification Opportunities for Shinhan Financial and Alterity Therapeutics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Alterity is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Alterity Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alterity Therapeutics 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 Alterity Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alterity Therapeutics has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Alterity Therapeutics go up and down completely randomly.
Pair Corralation between Shinhan Financial and Alterity Therapeutics
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.74 times more return on investment than Alterity Therapeutics. However, Shinhan Financial Group is 1.35 times less risky than Alterity Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Alterity Therapeutics is currently generating about -0.08 per unit of risk. If you would invest 3,782 in Shinhan Financial Group on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Shinhan Financial Group or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Alterity Therapeutics
Performance |
| Timeline |
| Shinhan Financial |
| Alterity Therapeutics |
Shinhan Financial and Alterity Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Alterity Therapeutics
The main advantage of trading using opposite Shinhan Financial and Alterity Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Alterity Therapeutics 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 Alterity Therapeutics will offset losses from the drop in Alterity Therapeutics' long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| Alterity Therapeutics vs. Tff Pharmaceuticals | Alterity Therapeutics vs. Eliem Therapeutics | Alterity Therapeutics vs. Inhibrx | Alterity Therapeutics vs. Enliven Therapeutics |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |