Correlation Between Sino Biopharmaceutica and Multicell Techs
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and Multicell Techs 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 Multicell Techs 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 Multicell Techs, you can compare the effects of market volatilities on Sino Biopharmaceutica and Multicell Techs 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 Multicell Techs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and Multicell Techs.
Diversification Opportunities for Sino Biopharmaceutica and Multicell Techs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sino and Multicell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Ltd and Multicell Techs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multicell Techs 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 Multicell Techs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multicell Techs has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and Multicell Techs go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and Multicell Techs
Assuming the 90 days horizon Sino Biopharmaceutical Ltd is expected to under-perform the Multicell Techs. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sino Biopharmaceutical Ltd is 12.75 times less risky than Multicell Techs. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Multicell Techs is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Multicell Techs on September 3, 2024 and sell it today you would lose (0.01) from holding Multicell Techs or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 70.24% |
| Values | Daily Returns |
Sino Biopharmaceutical Ltd vs. Multicell Techs
Performance |
| Timeline |
| Sino Biopharmaceutical |
| Multicell Techs |
Sino Biopharmaceutica and Multicell Techs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and Multicell Techs
The main advantage of trading using opposite Sino Biopharmaceutica and Multicell Techs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, Multicell Techs 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 Multicell Techs will offset losses from the drop in Multicell Techs' long position.| Sino Biopharmaceutica vs. Institute of Biomedical | Sino Biopharmaceutica vs. Defence Therapeutics | Sino Biopharmaceutica vs. Aileron Therapeutics | Sino Biopharmaceutica vs. Enlivex Therapeutics |
| Multicell Techs vs. Pmv Pharmaceuticals | Multicell Techs vs. MediciNova | Multicell Techs vs. Pharvaris BV | Multicell Techs vs. PepGen |
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 CEOs Directory module to screen CEOs from public companies around the world.
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