Correlation Between Sino Biopharmaceutica and Inventiva
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and Inventiva 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 Inventiva 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 Inventiva SA, you can compare the effects of market volatilities on Sino Biopharmaceutica and Inventiva 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 Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and Inventiva.
Diversification Opportunities for Sino Biopharmaceutica and Inventiva
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sino and Inventiva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Ltd and Inventiva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva SA 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 Inventiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventiva SA has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and Inventiva go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and Inventiva
Assuming the 90 days horizon Sino Biopharmaceutical Ltd is expected to generate 66.12 times more return on investment than Inventiva. However, Sino Biopharmaceutica is 66.12 times more volatile than Inventiva SA. It trades about 0.01 of its potential returns per unit of risk. Inventiva SA is currently generating about -0.06 per unit of risk. If you would invest 736.00 in Sino Biopharmaceutical Ltd on November 8, 2024 and sell it today you would lose (11.00) from holding Sino Biopharmaceutical Ltd or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 57.49% |
| Values | Daily Returns |
Sino Biopharmaceutical Ltd vs. Inventiva SA
Performance |
| Timeline |
| Sino Biopharmaceutical |
| Inventiva SA |
Sino Biopharmaceutica and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and Inventiva
The main advantage of trading using opposite Sino Biopharmaceutica and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, Inventiva 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 Inventiva will offset losses from the drop in Inventiva's long position.| Sino Biopharmaceutica vs. Institute of Biomedical | Sino Biopharmaceutica vs. Defence Therapeutics | Sino Biopharmaceutica vs. Enlivex Therapeutics | Sino Biopharmaceutica vs. Protagenic Therapeutics |
| Inventiva vs. Sino Biopharmaceutical Ltd | Inventiva vs. Defence Therapeutics | Inventiva vs. Enlivex Therapeutics | Inventiva vs. Living Cell Technologies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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