Correlation Between Sino Biopharmaceutica and Protext Mobility
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and Protext Mobility 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 Protext Mobility 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 Protext Mobility, you can compare the effects of market volatilities on Sino Biopharmaceutica and Protext Mobility 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 Protext Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and Protext Mobility.
Diversification Opportunities for Sino Biopharmaceutica and Protext Mobility
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sino and Protext is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Ltd and Protext Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protext Mobility 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 Protext Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protext Mobility has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and Protext Mobility go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and Protext Mobility
Assuming the 90 days horizon Sino Biopharmaceutica is expected to generate 1.44 times less return on investment than Protext Mobility. But when comparing it to its historical volatility, Sino Biopharmaceutical Ltd is 3.49 times less risky than Protext Mobility. It trades about 0.08 of its potential returns per unit of risk. Protext Mobility is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Protext Mobility on September 12, 2024 and sell it today you would lose (0.01) from holding Protext Mobility or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Biopharmaceutical Ltd vs. Protext Mobility
Performance |
| Timeline |
| Sino Biopharmaceutical |
| Protext Mobility |
Sino Biopharmaceutica and Protext Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and Protext Mobility
The main advantage of trading using opposite Sino Biopharmaceutica and Protext Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, Protext Mobility 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 Protext Mobility will offset losses from the drop in Protext Mobility's long position.| Sino Biopharmaceutica vs. Institute of Biomedical | Sino Biopharmaceutica vs. Defence Therapeutics | Sino Biopharmaceutica vs. Aileron Therapeutics | Sino Biopharmaceutica vs. Enlivex Therapeutics |
| Protext Mobility vs. Living Cell Technologies | Protext Mobility vs. Multicell Techs | Protext Mobility vs. Institute of Biomedical | Protext Mobility vs. Health Sciences Gr |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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