Correlation Between Shinhan Financial and Pfizer
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial and Pfizer 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 Pfizer 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 Pfizer Inc, you can compare the effects of market volatilities on Shinhan Financial and Pfizer 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 Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Pfizer.
Diversification Opportunities for Shinhan Financial and Pfizer
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and Pfizer is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc 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 Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Shinhan Financial i.e., Shinhan Financial and Pfizer go up and down completely randomly.
Pair Corralation between Shinhan Financial and Pfizer
Considering the 90-day investment horizon Shinhan Financial Group is expected to under-perform the Pfizer. In addition to that, Shinhan Financial is 1.14 times more volatile than Pfizer Inc. It trades about -0.21 of its total potential returns per unit of risk. Pfizer Inc is currently generating about 0.04 per unit of volatility. If you would invest 2,540 in Pfizer Inc on December 1, 2024 and sell it today you would earn a total of 70.00 from holding Pfizer Inc or generate 2.76% 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. Pfizer Inc
Performance |
Timeline |
Shinhan Financial |
Pfizer Inc |
Shinhan Financial and Pfizer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shinhan Financial and Pfizer
The main advantage of trading using opposite Shinhan Financial and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer'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 |
Pfizer vs. Emergent Biosolutions | Pfizer vs. Bausch Health Companies | Pfizer vs. Neurocrine Biosciences | Pfizer vs. Teva Pharma Industries |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |