Correlation Between Athenex and Sunshine Biopharma
Can any of the company-specific risk be diversified away by investing in both Athenex and Sunshine Biopharma 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 Athenex and Sunshine Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athenex and Sunshine Biopharma Warrant, you can compare the effects of market volatilities on Athenex and Sunshine Biopharma 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 Athenex with a short position of Sunshine Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athenex and Sunshine Biopharma.
Diversification Opportunities for Athenex and Sunshine Biopharma
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Athenex and Sunshine is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Athenex and Sunshine Biopharma Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunshine Biopharma and Athenex 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 Athenex are associated (or correlated) with Sunshine Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunshine Biopharma has no effect on the direction of Athenex i.e., Athenex and Sunshine Biopharma go up and down completely randomly.
Pair Corralation between Athenex and Sunshine Biopharma
If you would invest 7.70 in Sunshine Biopharma Warrant on August 25, 2024 and sell it today you would earn a total of 13.30 from holding Sunshine Biopharma Warrant or generate 172.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Athenex vs. Sunshine Biopharma Warrant
Performance |
| Timeline |
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sunshine Biopharma |
Athenex and Sunshine Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athenex and Sunshine Biopharma
The main advantage of trading using opposite Athenex and Sunshine Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athenex position performs unexpectedly, Sunshine Biopharma 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 Sunshine Biopharma will offset losses from the drop in Sunshine Biopharma's long position.The idea behind Athenex and Sunshine Biopharma Warrant 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.| Sunshine Biopharma vs. Thayer Ventures Acquisition | Sunshine Biopharma vs. Biofrontera Warrants | Sunshine Biopharma vs. Neurosense Therapeutics |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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