Correlation Between Sino Biopharmaceutica and Oxford Nanopore
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and Oxford Nanopore 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 Oxford Nanopore 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 Oxford Nanopore Technologies, you can compare the effects of market volatilities on Sino Biopharmaceutica and Oxford Nanopore 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 Oxford Nanopore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and Oxford Nanopore.
Diversification Opportunities for Sino Biopharmaceutica and Oxford Nanopore
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sino and Oxford is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Ltd and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech 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 Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and Oxford Nanopore go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and Oxford Nanopore
Assuming the 90 days horizon Sino Biopharmaceutica is expected to generate 1.19 times less return on investment than Oxford Nanopore. But when comparing it to its historical volatility, Sino Biopharmaceutical Ltd is 1.14 times less risky than Oxford Nanopore. It trades about 0.0 of its potential returns per unit of risk. Oxford Nanopore Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 289.00 in Oxford Nanopore Technologies on September 13, 2024 and sell it today you would lose (85.00) from holding Oxford Nanopore Technologies or give up 29.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 69.9% |
| Values | Daily Returns |
Sino Biopharmaceutical Ltd vs. Oxford Nanopore Technologies
Performance |
| Timeline |
| Sino Biopharmaceutical |
| Oxford Nanopore Tech |
Sino Biopharmaceutica and Oxford Nanopore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and Oxford Nanopore
The main advantage of trading using opposite Sino Biopharmaceutica and Oxford Nanopore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, Oxford Nanopore 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 Oxford Nanopore will offset losses from the drop in Oxford Nanopore's long position.| Sino Biopharmaceutica vs. Institute of Biomedical | Sino Biopharmaceutica vs. Defence Therapeutics | Sino Biopharmaceutica vs. Aileron Therapeutics | Sino Biopharmaceutica vs. Enlivex Therapeutics |
| Oxford Nanopore vs. Lineage Cell Therapeutics | Oxford Nanopore vs. Cadrenal Therapeutics, Common | Oxford Nanopore vs. ImmuCell | Oxford Nanopore vs. Braxia Scientific Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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