Correlation Between BNK Financial and Sinil Pharmaceutical

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BNK Financial 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 BNK Financial and Sinil Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNK Financial Group and Sinil Pharmaceutical Co, you can compare the effects of market volatilities on BNK Financial 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 BNK Financial with a short position of Sinil Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and Sinil Pharmaceutical.

Diversification Opportunities for BNK Financial and Sinil Pharmaceutical

-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between BNK and Sinil is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group and Sinil Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinil Pharmaceutical and BNK 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 BNK Financial Group 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 BNK Financial i.e., BNK Financial and Sinil Pharmaceutical go up and down completely randomly.

Pair Corralation between BNK Financial and Sinil Pharmaceutical

Assuming the 90 days trading horizon BNK Financial Group is expected to generate 0.92 times more return on investment than Sinil Pharmaceutical. However, BNK Financial Group is 1.09 times less risky than Sinil Pharmaceutical. It trades about 0.11 of its potential returns per unit of risk. Sinil Pharmaceutical Co is currently generating about -0.02 per unit of risk. If you would invest  609,520  in BNK Financial Group on September 12, 2024 and sell it today you would earn a total of  473,480  from holding BNK Financial Group or generate 77.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

BNK Financial Group  vs.  Sinil Pharmaceutical Co

 Performance 
       Timeline  
BNK Financial Group 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in BNK Financial Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BNK Financial sustained solid returns over the last few months and may actually be approaching a breakup point.
Sinil Pharmaceutical 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sinil Pharmaceutical Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

BNK Financial and Sinil Pharmaceutical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BNK Financial and Sinil Pharmaceutical

The main advantage of trading using opposite BNK Financial and Sinil Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial 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 BNK Financial Group 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.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing