Correlation Between INtRON Biotechnology and Sinil Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Sinil Pharmaceutical 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 INtRON Biotechnology and Sinil Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Sinil Pharmaceutical Co, you can compare the effects of market volatilities on INtRON Biotechnology and Sinil Pharmaceutical 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 INtRON Biotechnology with a short position of Sinil Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Sinil Pharmaceutical.
Diversification Opportunities for INtRON Biotechnology and Sinil Pharmaceutical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INtRON and Sinil is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Sinil Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinil Pharmaceutical and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with Sinil Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinil Pharmaceutical has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Sinil Pharmaceutical go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Sinil Pharmaceutical
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to under-perform the Sinil Pharmaceutical. In addition to that, INtRON Biotechnology is 1.43 times more volatile than Sinil Pharmaceutical Co. It trades about -0.03 of its total potential returns per unit of risk. Sinil Pharmaceutical Co is currently generating about -0.01 per unit of volatility. If you would invest 716,000 in Sinil Pharmaceutical Co on November 8, 2024 and sell it today you would lose (65,000) from holding Sinil Pharmaceutical Co or give up 9.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Sinil Pharmaceutical Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| Sinil Pharmaceutical |
INtRON Biotechnology and Sinil Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Sinil Pharmaceutical
The main advantage of trading using opposite INtRON Biotechnology and Sinil Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Sinil Pharmaceutical 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 Sinil Pharmaceutical will offset losses from the drop in Sinil Pharmaceutical's long position.The idea behind iNtRON Biotechnology and Sinil Pharmaceutical Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sinil Pharmaceutical vs. Kolon Life Science | Sinil Pharmaceutical vs. JETEMA Co | Sinil Pharmaceutical vs. Aminologics CoLtd | Sinil Pharmaceutical vs. HLB Pharmaceutical Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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