Correlation Between Shinhan Financial and Grayscale Ethereum
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Grayscale Ethereum 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 Grayscale Ethereum 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 Grayscale Ethereum Classic, you can compare the effects of market volatilities on Shinhan Financial and Grayscale Ethereum 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 Grayscale Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Grayscale Ethereum.
Diversification Opportunities for Shinhan Financial and Grayscale Ethereum
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Grayscale is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Grayscale Ethereum Classic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Ethereum 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 Grayscale Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Ethereum has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Grayscale Ethereum go up and down completely randomly.
Pair Corralation between Shinhan Financial and Grayscale Ethereum
Considering the 90-day investment horizon Shinhan Financial is expected to generate 1.21 times less return on investment than Grayscale Ethereum. But when comparing it to its historical volatility, Shinhan Financial Group is 2.57 times less risky than Grayscale Ethereum. It trades about 0.08 of its potential returns per unit of risk. Grayscale Ethereum Classic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,304 in Grayscale Ethereum Classic on September 2, 2024 and sell it today you would earn a total of 171.00 from holding Grayscale Ethereum Classic or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Grayscale Ethereum Classic
Performance |
| Timeline |
| Shinhan Financial |
| Grayscale Ethereum |
Shinhan Financial and Grayscale Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Grayscale Ethereum
The main advantage of trading using opposite Shinhan Financial and Grayscale Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Grayscale Ethereum 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 Grayscale Ethereum will offset losses from the drop in Grayscale Ethereum's 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 |
| Grayscale Ethereum vs. Grayscale Bitcoin Cash | Grayscale Ethereum vs. Grayscale Litecoin Trust | Grayscale Ethereum vs. Grayscale Digital Large | Grayscale Ethereum vs. Grayscale Ethereum Trust |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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