Correlation Between Shinhan Financial and Catalyst Biosciences
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Catalyst Biosciences 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 Catalyst Biosciences 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 Catalyst Biosciences, you can compare the effects of market volatilities on Shinhan Financial and Catalyst Biosciences 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 Catalyst Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Catalyst Biosciences.
Diversification Opportunities for Shinhan Financial and Catalyst Biosciences
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Catalyst is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Catalyst Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Biosciences 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 Catalyst Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Biosciences has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Catalyst Biosciences go up and down completely randomly.
Pair Corralation between Shinhan Financial and Catalyst Biosciences
If you would invest 3,271 in Shinhan Financial Group on November 3, 2024 and sell it today you would earn a total of 242.00 from holding Shinhan Financial Group or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Catalyst Biosciences
Performance |
| Timeline |
| Shinhan Financial |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Catalyst Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Catalyst Biosciences
The main advantage of trading using opposite Shinhan Financial and Catalyst Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Catalyst Biosciences 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 Catalyst Biosciences will offset losses from the drop in Catalyst Biosciences' 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 |
| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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