Correlation Between Sunshine Biopharma and Athenex
Can any of the company-specific risk be diversified away by investing in both Sunshine Biopharma and Athenex 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 Sunshine Biopharma and Athenex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunshine Biopharma Warrant and Athenex, you can compare the effects of market volatilities on Sunshine Biopharma and Athenex 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 Sunshine Biopharma with a short position of Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunshine Biopharma and Athenex.
Diversification Opportunities for Sunshine Biopharma and Athenex
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunshine and Athenex is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sunshine Biopharma Warrant and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex and Sunshine Biopharma 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 Sunshine Biopharma Warrant are associated (or correlated) with Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of Sunshine Biopharma i.e., Sunshine Biopharma and Athenex go up and down completely randomly.
Pair Corralation between Sunshine Biopharma and Athenex
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 |
Sunshine Biopharma Warrant vs. Athenex
Performance |
| Timeline |
| Sunshine Biopharma |
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sunshine Biopharma and Athenex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunshine Biopharma and Athenex
The main advantage of trading using opposite Sunshine Biopharma and Athenex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunshine Biopharma position performs unexpectedly, Athenex 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 Athenex will offset losses from the drop in Athenex's long position.| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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