Correlation Between SanBio Company and Biostage
Can any of the company-specific risk be diversified away by investing in both SanBio Company and Biostage 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 Biostage 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 Biostage, you can compare the effects of market volatilities on SanBio Company and Biostage 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 Biostage. Check out your portfolio center. Please also check ongoing floating volatility patterns of SanBio Company and Biostage.
Diversification Opportunities for SanBio Company and Biostage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SanBio and Biostage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SanBio Company Limited and Biostage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biostage 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 Biostage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biostage has no effect on the direction of SanBio Company i.e., SanBio Company and Biostage go up and down completely randomly.
Pair Corralation between SanBio Company and Biostage
If you would invest 420.00 in Biostage on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Biostage or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
SanBio Company Limited vs. Biostage
Performance |
| Timeline |
| SanBio Limited |
| Biostage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SanBio Company and Biostage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SanBio Company and Biostage
The main advantage of trading using opposite SanBio Company and Biostage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SanBio Company position performs unexpectedly, Biostage 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 Biostage will offset losses from the drop in Biostage's long position.| SanBio Company vs. Rigel Pharmaceuticals | SanBio Company vs. Geron | SanBio Company vs. Verastem | SanBio Company vs. Immutep Ltd ADR |
| Biostage vs. Biotron Limited | Biostage vs. biOasis Technologies | Biostage vs. Covalon Technologies | Biostage vs. Mosaic Immunoengineering |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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