Correlation Between SynCore Biotechnology and Golden Biotechnology
Can any of the company-specific risk be diversified away by investing in both SynCore Biotechnology 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 SynCore Biotechnology and Golden Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SynCore Biotechnology Co and Golden Biotechnology, you can compare the effects of market volatilities on SynCore Biotechnology 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 SynCore Biotechnology with a short position of Golden Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SynCore Biotechnology and Golden Biotechnology.
Diversification Opportunities for SynCore Biotechnology and Golden Biotechnology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SynCore and Golden is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding SynCore Biotechnology Co and Golden Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Biotechnology and SynCore 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 SynCore Biotechnology Co 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 SynCore Biotechnology i.e., SynCore Biotechnology and Golden Biotechnology go up and down completely randomly.
Pair Corralation between SynCore Biotechnology and Golden Biotechnology
Assuming the 90 days trading horizon SynCore Biotechnology Co is expected to generate 0.57 times more return on investment than Golden Biotechnology. However, SynCore Biotechnology Co is 1.75 times less risky than Golden Biotechnology. It trades about -0.08 of its potential returns per unit of risk. Golden Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 4,400 in SynCore Biotechnology Co on September 1, 2024 and sell it today you would lose (875.00) from holding SynCore Biotechnology Co or give up 19.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SynCore Biotechnology Co vs. Golden Biotechnology
Performance |
| Timeline |
| SynCore Biotechnology |
| Golden Biotechnology |
SynCore Biotechnology and Golden Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SynCore Biotechnology and Golden Biotechnology
The main advantage of trading using opposite SynCore Biotechnology and Golden Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SynCore Biotechnology 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.| SynCore Biotechnology vs. Great China Metal | SynCore Biotechnology vs. Sunspring Metal Corp | SynCore Biotechnology vs. Amulaire Thermal Technology | SynCore Biotechnology vs. Compal Broadband Networks |
| Golden Biotechnology vs. Grape King Bio | Golden Biotechnology vs. ScinoPharm Taiwan | Golden Biotechnology vs. TTY Biopharm Co | Golden Biotechnology vs. YungShin Global Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |