Correlation Between Shinhan Financial and Icosavax
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Icosavax 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 Icosavax 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 Icosavax, you can compare the effects of market volatilities on Shinhan Financial and Icosavax 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 Icosavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Icosavax.
Diversification Opportunities for Shinhan Financial and Icosavax
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinhan and Icosavax is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Icosavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icosavax 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 Icosavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icosavax has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Icosavax go up and down completely randomly.
Pair Corralation between Shinhan Financial and Icosavax
If you would invest 902.00 in Icosavax on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Icosavax or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Shinhan Financial Group vs. Icosavax
Performance |
| Timeline |
| Shinhan Financial |
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shinhan Financial and Icosavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Icosavax
The main advantage of trading using opposite Shinhan Financial and Icosavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Icosavax 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 Icosavax will offset losses from the drop in Icosavax's long position.| Shinhan Financial vs. Banco Santander Brasil | Shinhan Financial vs. CrossFirst Bankshares | Shinhan Financial vs. Banco Bradesco SA | Shinhan Financial vs. CF Bankshares |
| Icosavax vs. Terns Pharmaceuticals | Icosavax vs. Amylyx Pharmaceuticals | Icosavax vs. Acumen Pharmaceuticals | Icosavax vs. Inozyme Pharma |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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