Correlation Between Shinhan Financial and Altamira Therapeutics
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Altamira 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 Altamira 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 Altamira Therapeutics, you can compare the effects of market volatilities on Shinhan Financial and Altamira 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 Altamira Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Altamira Therapeutics.
Diversification Opportunities for Shinhan Financial and Altamira Therapeutics
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Altamira is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Altamira Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamira 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 Altamira Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamira Therapeutics has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Altamira Therapeutics go up and down completely randomly.
Pair Corralation between Shinhan Financial and Altamira Therapeutics
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.44 times more return on investment than Altamira Therapeutics. However, Shinhan Financial Group is 2.25 times less risky than Altamira Therapeutics. It trades about -0.01 of its potential returns per unit of risk. Altamira Therapeutics is currently generating about -0.11 per unit of risk. If you would invest 4,047 in Shinhan Financial Group on August 27, 2024 and sell it today you would lose (43.00) from holding Shinhan Financial Group or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Altamira Therapeutics
Performance |
| Timeline |
| Shinhan Financial |
| Altamira Therapeutics |
Shinhan Financial and Altamira Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Altamira Therapeutics
The main advantage of trading using opposite Shinhan Financial and Altamira Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Altamira 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 Altamira Therapeutics will offset losses from the drop in Altamira 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 |
| Altamira Therapeutics vs. Eliem Therapeutics | Altamira Therapeutics vs. HCW Biologics | Altamira Therapeutics vs. Scpharmaceuticals | Altamira Therapeutics vs. Milestone Pharmaceuticals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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