Correlation Between Alpha Teknova and China SXT
Can any of the company-specific risk be diversified away by investing in both Alpha Teknova and China SXT 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 Alpha Teknova and China SXT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Teknova and China SXT Pharmaceuticals, you can compare the effects of market volatilities on Alpha Teknova and China SXT 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 Alpha Teknova with a short position of China SXT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Teknova and China SXT.
Diversification Opportunities for Alpha Teknova and China SXT
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alpha and China is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Teknova and China SXT Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China SXT Pharmaceuticals and Alpha Teknova 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 Alpha Teknova are associated (or correlated) with China SXT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China SXT Pharmaceuticals has no effect on the direction of Alpha Teknova i.e., Alpha Teknova and China SXT go up and down completely randomly.
Pair Corralation between Alpha Teknova and China SXT
Given the investment horizon of 90 days Alpha Teknova is expected to generate 1.36 times more return on investment than China SXT. However, Alpha Teknova is 1.36 times more volatile than China SXT Pharmaceuticals. It trades about 0.18 of its potential returns per unit of risk. China SXT Pharmaceuticals is currently generating about -0.1 per unit of risk. If you would invest 176.00 in Alpha Teknova on August 29, 2024 and sell it today you would earn a total of 559.00 from holding Alpha Teknova or generate 317.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpha Teknova vs. China SXT Pharmaceuticals
Performance |
| Timeline |
| Alpha Teknova |
| China SXT Pharmaceuticals |
Alpha Teknova and China SXT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Teknova and China SXT
The main advantage of trading using opposite Alpha Teknova and China SXT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Teknova position performs unexpectedly, China SXT 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 China SXT will offset losses from the drop in China SXT's long position.| Alpha Teknova vs. Phibro Animal Health | Alpha Teknova vs. Procaps Group SA | Alpha Teknova vs. Amphastar P | Alpha Teknova vs. Alkermes Plc |
| China SXT vs. Akanda Corp | China SXT vs. Petros Pharmaceuticals | China SXT vs. GelStat Corp | China SXT vs. Shuttle Pharmaceuticals |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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