Correlation Between Sino Biopharmaceutica and Cingulate
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and Cingulate 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 Cingulate 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 Cingulate, you can compare the effects of market volatilities on Sino Biopharmaceutica and Cingulate 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 Cingulate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and Cingulate.
Diversification Opportunities for Sino Biopharmaceutica and Cingulate
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sino and Cingulate is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Ltd and Cingulate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate 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 Cingulate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and Cingulate go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and Cingulate
If you would invest 383.00 in Cingulate on September 3, 2024 and sell it today you would earn a total of 53.00 from holding Cingulate or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sino Biopharmaceutical Ltd vs. Cingulate
Performance |
| Timeline |
| Sino Biopharmaceutical |
| Cingulate |
Sino Biopharmaceutica and Cingulate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and Cingulate
The main advantage of trading using opposite Sino Biopharmaceutica and Cingulate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, Cingulate 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 Cingulate will offset losses from the drop in Cingulate's long position.| Sino Biopharmaceutica vs. Institute of Biomedical | Sino Biopharmaceutica vs. Defence Therapeutics | Sino Biopharmaceutica vs. Aileron Therapeutics | Sino Biopharmaceutica vs. Enlivex Therapeutics |
| Cingulate vs. SAB Biotherapeutics | Cingulate vs. Senti Biosciences | Cingulate vs. Aerovate Therapeutics | Cingulate vs. Adagene |
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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