Correlation Between Sino Biopharmaceutica and Benitec Biopharma
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and Benitec 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 Sino Biopharmaceutica and Benitec Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Biopharmaceutical Ltd and Benitec Biopharma Ltd, you can compare the effects of market volatilities on Sino Biopharmaceutica and Benitec 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 Sino Biopharmaceutica with a short position of Benitec Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and Benitec Biopharma.
Diversification Opportunities for Sino Biopharmaceutica and Benitec Biopharma
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Benitec is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Ltd and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma and Sino Biopharmaceutica 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 Sino Biopharmaceutical Ltd are associated (or correlated) with Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and Benitec Biopharma go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and Benitec Biopharma
If you would invest 905.00 in Sino Biopharmaceutical Ltd on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Sino Biopharmaceutical Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sino Biopharmaceutical Ltd vs. Benitec Biopharma Ltd
Performance |
| Timeline |
| Sino Biopharmaceutical |
| Benitec Biopharma |
Sino Biopharmaceutica and Benitec Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and Benitec Biopharma
The main advantage of trading using opposite Sino Biopharmaceutica and Benitec Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, Benitec 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 Benitec Biopharma will offset losses from the drop in Benitec Biopharma's long position.| Sino Biopharmaceutica vs. Institute of Biomedical | Sino Biopharmaceutica vs. Defence Therapeutics | Sino Biopharmaceutica vs. Aileron Therapeutics | Sino Biopharmaceutica vs. Enlivex Therapeutics |
| Benitec Biopharma vs. Bio Path Holdings | Benitec Biopharma vs. Capricor Therapeutics | Benitec Biopharma vs. NextCure | Benitec Biopharma vs. Aileron 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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