Correlation Between Sino Biopharmaceutica and PureTech Health
Can any of the company-specific risk be diversified away by investing in both Sino Biopharmaceutica and PureTech Health 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 PureTech Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Biopharmaceutical Limited and PureTech Health plc, you can compare the effects of market volatilities on Sino Biopharmaceutica and PureTech Health 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 PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Biopharmaceutica and PureTech Health.
Diversification Opportunities for Sino Biopharmaceutica and PureTech Health
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sino and PureTech is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sino Biopharmaceutical Limited and PureTech Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PureTech Health plc 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 Limited are associated (or correlated) with PureTech Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PureTech Health plc has no effect on the direction of Sino Biopharmaceutica i.e., Sino Biopharmaceutica and PureTech Health go up and down completely randomly.
Pair Corralation between Sino Biopharmaceutica and PureTech Health
If you would invest 35.00 in Sino Biopharmaceutical Limited on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Sino Biopharmaceutical Limited or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Sino Biopharmaceutical Limited vs. PureTech Health plc
Performance |
| Timeline |
| Sino Biopharmaceutical |
| PureTech Health plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sino Biopharmaceutica and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Biopharmaceutica and PureTech Health
The main advantage of trading using opposite Sino Biopharmaceutica and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Biopharmaceutica position performs unexpectedly, PureTech Health 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 PureTech Health will offset losses from the drop in PureTech Health's long position.| Sino Biopharmaceutica vs. Silo Pharma | Sino Biopharmaceutica vs. Inventiva Sa | Sino Biopharmaceutica vs. Biocardia | Sino Biopharmaceutica vs. UroGen Pharma |
| PureTech Health vs. Apellis Pharmaceuticals | PureTech Health vs. Terns Pharmaceuticals | PureTech Health vs. Day One Biopharmaceuticals | PureTech Health vs. Blueprint Medicines 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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