Correlation Between Sino Biopharmaceutica and ChitogenX
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and ChitogenX 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 ChitogenX 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 ChitogenX, you can compare the effects of market volatilities on Sino Biopharmaceutica and ChitogenX 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 ChitogenX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and ChitogenX.
Diversification Opportunities for Sino Biopharmaceutica and ChitogenX
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sino and ChitogenX is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Ltd and ChitogenX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChitogenX 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 ChitogenX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChitogenX has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and ChitogenX go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and ChitogenX
Assuming the 90 days horizon Sino Biopharmaceutical Ltd is expected to generate 0.39 times more return on investment than ChitogenX. However, Sino Biopharmaceutical Ltd is 2.58 times less risky than ChitogenX. It trades about 0.01 of its potential returns per unit of risk. ChitogenX is currently generating about -0.07 per unit of risk. If you would invest 952.00 in Sino Biopharmaceutical Ltd on September 14, 2024 and sell it today you would lose (47.00) from holding Sino Biopharmaceutical Ltd or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 63.2% |
| Values | Daily Returns |
Sino Biopharmaceutical Ltd vs. ChitogenX
Performance |
| Timeline |
| Sino Biopharmaceutical |
| ChitogenX |
Sino Biopharmaceutica and ChitogenX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and ChitogenX
The main advantage of trading using opposite Sino Biopharmaceutica and ChitogenX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, ChitogenX 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 ChitogenX will offset losses from the drop in ChitogenX's long position.| Sino Biopharmaceutica vs. Institute of Biomedical | Sino Biopharmaceutica vs. Defence Therapeutics | Sino Biopharmaceutica vs. Aileron Therapeutics | Sino Biopharmaceutica vs. Enlivex Therapeutics |
| ChitogenX vs. Sino Biopharmaceutical Ltd | ChitogenX vs. Defence Therapeutics | ChitogenX vs. Aileron Therapeutics | ChitogenX vs. Enlivex 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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