Correlation Between Shinhan Financial and GlycoMimetics
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and GlycoMimetics 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 GlycoMimetics 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 GlycoMimetics, you can compare the effects of market volatilities on Shinhan Financial and GlycoMimetics 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 GlycoMimetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and GlycoMimetics.
Diversification Opportunities for Shinhan Financial and GlycoMimetics
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and GlycoMimetics is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and GlycoMimetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlycoMimetics 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 GlycoMimetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlycoMimetics has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and GlycoMimetics go up and down completely randomly.
Pair Corralation between Shinhan Financial and GlycoMimetics
Considering the 90-day investment horizon Shinhan Financial Group is expected to under-perform the GlycoMimetics. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Financial Group is 20.04 times less risky than GlycoMimetics. The stock trades about -0.05 of its potential returns per unit of risk. The GlycoMimetics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 17.00 in GlycoMimetics on August 29, 2024 and sell it today you would earn a total of 15.00 from holding GlycoMimetics or generate 88.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. GlycoMimetics
Performance |
| Timeline |
| Shinhan Financial |
| GlycoMimetics |
Shinhan Financial and GlycoMimetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and GlycoMimetics
The main advantage of trading using opposite Shinhan Financial and GlycoMimetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, GlycoMimetics 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 GlycoMimetics will offset losses from the drop in GlycoMimetics' long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| GlycoMimetics vs. Mineralys Therapeutics, Common | GlycoMimetics vs. Foghorn Therapeutics | GlycoMimetics vs. Inventiva Sa | GlycoMimetics vs. Dyne 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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