Correlation Between SCI Pharmtech and Golden Biotechnology
Can any of the company-specific risk be diversified away by investing in both SCI Pharmtech and Golden Biotechnology 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 SCI Pharmtech and Golden Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCI Pharmtech and Golden Biotechnology, you can compare the effects of market volatilities on SCI Pharmtech and Golden Biotechnology 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 SCI Pharmtech with a short position of Golden Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCI Pharmtech and Golden Biotechnology.
Diversification Opportunities for SCI Pharmtech and Golden Biotechnology
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCI and Golden is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SCI Pharmtech and Golden Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Biotechnology and SCI Pharmtech 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 SCI Pharmtech are associated (or correlated) with Golden Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Biotechnology has no effect on the direction of SCI Pharmtech i.e., SCI Pharmtech and Golden Biotechnology go up and down completely randomly.
Pair Corralation between SCI Pharmtech and Golden Biotechnology
Assuming the 90 days trading horizon SCI Pharmtech is expected to generate 0.34 times more return on investment than Golden Biotechnology. However, SCI Pharmtech is 2.92 times less risky than Golden Biotechnology. It trades about 0.41 of its potential returns per unit of risk. Golden Biotechnology is currently generating about 0.05 per unit of risk. If you would invest 8,960 in SCI Pharmtech on August 25, 2024 and sell it today you would earn a total of 790.00 from holding SCI Pharmtech or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SCI Pharmtech vs. Golden Biotechnology
Performance |
| Timeline |
| SCI Pharmtech |
| Golden Biotechnology |
SCI Pharmtech and Golden Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCI Pharmtech and Golden Biotechnology
The main advantage of trading using opposite SCI Pharmtech and Golden Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCI Pharmtech position performs unexpectedly, Golden Biotechnology 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 Golden Biotechnology will offset losses from the drop in Golden Biotechnology's long position.| SCI Pharmtech vs. CHC Healthcare Group | SCI Pharmtech vs. GenMont Biotech | SCI Pharmtech vs. Sinphar Pharmaceutical Co | SCI Pharmtech vs. Abnova Taiwan Corp |
| Golden Biotechnology vs. Grape King Bio | Golden Biotechnology vs. ScinoPharm Taiwan | Golden Biotechnology vs. YungShin Global Holding | Golden Biotechnology vs. Standard Chemical Pharmaceutical |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |