Correlation Between Sinopac Financial and Onyx Healthcare
Can any of the company-specific risk be diversified away by investing in both Sinopac Financial and Onyx Healthcare 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 Sinopac Financial and Onyx Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinopac Financial Holdings and Onyx Healthcare, you can compare the effects of market volatilities on Sinopac Financial and Onyx Healthcare 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 Sinopac Financial with a short position of Onyx Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopac Financial and Onyx Healthcare.
Diversification Opportunities for Sinopac Financial and Onyx Healthcare
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinopac and Onyx is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sinopac Financial Holdings and Onyx Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onyx Healthcare and Sinopac 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 Sinopac Financial Holdings are associated (or correlated) with Onyx Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onyx Healthcare has no effect on the direction of Sinopac Financial i.e., Sinopac Financial and Onyx Healthcare go up and down completely randomly.
Pair Corralation between Sinopac Financial and Onyx Healthcare
Assuming the 90 days trading horizon Sinopac Financial Holdings is expected to under-perform the Onyx Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Sinopac Financial Holdings is 2.1 times less risky than Onyx Healthcare. The stock trades about -0.21 of its potential returns per unit of risk. The Onyx Healthcare is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 15,350 in Onyx Healthcare on October 11, 2024 and sell it today you would earn a total of 350.00 from holding Onyx Healthcare or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinopac Financial Holdings vs. Onyx Healthcare
Performance |
| Timeline |
| Sinopac Financial |
| Onyx Healthcare |
Sinopac Financial and Onyx Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopac Financial and Onyx Healthcare
The main advantage of trading using opposite Sinopac Financial and Onyx Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopac Financial position performs unexpectedly, Onyx Healthcare 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 Onyx Healthcare will offset losses from the drop in Onyx Healthcare's long position.| Sinopac Financial vs. First Financial Holding | Sinopac Financial vs. Taishin Financial Holding | Sinopac Financial vs. CTBC Financial Holding | Sinopac Financial vs. Mega Financial Holding |
| Onyx Healthcare vs. Chung Lien Transportation | Onyx Healthcare vs. Shin Kong Financial | Onyx Healthcare vs. Sinopac Financial Holdings | Onyx Healthcare vs. IBF Financial Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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