Correlation Between Gemina Laboratories and Sino Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Gemina Laboratories and Sino Biopharmaceutica 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 Gemina Laboratories and Sino Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemina Laboratories and Sino Biopharmaceutical Ltd, you can compare the effects of market volatilities on Gemina Laboratories and Sino Biopharmaceutica 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 Gemina Laboratories with a short position of Sino Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemina Laboratories and Sino Biopharmaceutica.
Diversification Opportunities for Gemina Laboratories and Sino Biopharmaceutica
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gemina and Sino is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gemina Laboratories and Sino Biopharmaceutical Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Biopharmaceutical and Gemina Laboratories 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 Gemina Laboratories are associated (or correlated) with Sino Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Biopharmaceutical has no effect on the direction of Gemina Laboratories i.e., Gemina Laboratories and Sino Biopharmaceutica go up and down completely randomly.
Pair Corralation between Gemina Laboratories and Sino Biopharmaceutica
If you would invest 40.00 in Gemina Laboratories on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Gemina Laboratories or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemina Laboratories vs. Sino Biopharmaceutical Ltd
Performance |
| Timeline |
| Gemina Laboratories |
| Sino Biopharmaceutical |
Gemina Laboratories and Sino Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemina Laboratories and Sino Biopharmaceutica
The main advantage of trading using opposite Gemina Laboratories and Sino Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemina Laboratories position performs unexpectedly, Sino Biopharmaceutica 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 Sino Biopharmaceutica will offset losses from the drop in Sino Biopharmaceutica's long position.| Gemina Laboratories vs. Novo Nordisk AS | Gemina Laboratories vs. Genmab AS | Gemina Laboratories vs. Inhibikase Therapeutics | Gemina Laboratories vs. Purple Biotech |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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