Correlation Between SynCore Biotechnology and Li Kang
Can any of the company-specific risk be diversified away by investing in both SynCore Biotechnology and Li Kang 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 Li Kang 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 Li Kang Biomedical, you can compare the effects of market volatilities on SynCore Biotechnology and Li Kang 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 Li Kang. Check out your portfolio center. Please also check ongoing floating volatility patterns of SynCore Biotechnology and Li Kang.
Diversification Opportunities for SynCore Biotechnology and Li Kang
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SynCore and 6242 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SynCore Biotechnology Co and Li Kang Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Li Kang Biomedical 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 Li Kang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Li Kang Biomedical has no effect on the direction of SynCore Biotechnology i.e., SynCore Biotechnology and Li Kang go up and down completely randomly.
Pair Corralation between SynCore Biotechnology and Li Kang
Assuming the 90 days trading horizon SynCore Biotechnology Co is expected to generate 1.94 times more return on investment than Li Kang. However, SynCore Biotechnology is 1.94 times more volatile than Li Kang Biomedical. It trades about 0.0 of its potential returns per unit of risk. Li Kang Biomedical is currently generating about -0.07 per unit of risk. If you would invest 3,715 in SynCore Biotechnology Co on September 2, 2024 and sell it today you would lose (190.00) from holding SynCore Biotechnology Co or give up 5.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SynCore Biotechnology Co vs. Li Kang Biomedical
Performance |
| Timeline |
| SynCore Biotechnology |
| Li Kang Biomedical |
SynCore Biotechnology and Li Kang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SynCore Biotechnology and Li Kang
The main advantage of trading using opposite SynCore Biotechnology and Li Kang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SynCore Biotechnology position performs unexpectedly, Li Kang 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 Li Kang will offset losses from the drop in Li Kang's long position.| SynCore Biotechnology vs. GameSparcs Co | SynCore Biotechnology vs. APEX International Financial | SynCore Biotechnology vs. U Ming Marine Transport | SynCore Biotechnology vs. Taiwan Cooperative Financial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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