Correlation Between SanBio Company and Biotron
Can any of the company-specific risk be diversified away by investing in both SanBio Company and Biotron 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 SanBio Company and Biotron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SanBio Company Limited and Biotron Limited, you can compare the effects of market volatilities on SanBio Company and Biotron 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 SanBio Company with a short position of Biotron. Check out your portfolio center. Please also check ongoing floating volatility patterns of SanBio Company and Biotron.
Diversification Opportunities for SanBio Company and Biotron
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SanBio and Biotron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SanBio Company Limited and Biotron Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotron Limited and SanBio Company 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 SanBio Company Limited are associated (or correlated) with Biotron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotron Limited has no effect on the direction of SanBio Company i.e., SanBio Company and Biotron go up and down completely randomly.
Pair Corralation between SanBio Company and Biotron
If you would invest 385.00 in SanBio Company Limited on August 27, 2024 and sell it today you would earn a total of 0.00 from holding SanBio Company Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SanBio Company Limited vs. Biotron Limited
Performance |
| Timeline |
| SanBio Limited |
| Biotron Limited |
SanBio Company and Biotron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SanBio Company and Biotron
The main advantage of trading using opposite SanBio Company and Biotron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SanBio Company position performs unexpectedly, Biotron 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 Biotron will offset losses from the drop in Biotron's long position.| SanBio Company vs. Alector | SanBio Company vs. Legend Biotech Corp | SanBio Company vs. Ascendis Pharma AS | SanBio Company vs. Cytokinetics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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