Correlation Between SINOPHARM GROUP and AmerisourceBergen
Can any of the company-specific risk be diversified away by investing in both SINOPHARM GROUP and AmerisourceBergen 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 SINOPHARM GROUP and AmerisourceBergen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINOPHARM GROUP 15ON and AmerisourceBergen, you can compare the effects of market volatilities on SINOPHARM GROUP and AmerisourceBergen 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 SINOPHARM GROUP with a short position of AmerisourceBergen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINOPHARM GROUP and AmerisourceBergen.
Diversification Opportunities for SINOPHARM GROUP and AmerisourceBergen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SINOPHARM and AmerisourceBergen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SINOPHARM GROUP 15ON and AmerisourceBergen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmerisourceBergen and SINOPHARM GROUP 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 SINOPHARM GROUP 15ON are associated (or correlated) with AmerisourceBergen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmerisourceBergen has no effect on the direction of SINOPHARM GROUP i.e., SINOPHARM GROUP and AmerisourceBergen go up and down completely randomly.
Pair Corralation between SINOPHARM GROUP and AmerisourceBergen
If you would invest 21,540 in AmerisourceBergen on November 3, 2024 and sell it today you would earn a total of 3,130 from holding AmerisourceBergen or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
SINOPHARM GROUP 15ON vs. AmerisourceBergen
Performance |
| Timeline |
| SINOPHARM GROUP 15ON |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AmerisourceBergen |
SINOPHARM GROUP and AmerisourceBergen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINOPHARM GROUP and AmerisourceBergen
The main advantage of trading using opposite SINOPHARM GROUP and AmerisourceBergen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINOPHARM GROUP position performs unexpectedly, AmerisourceBergen 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 AmerisourceBergen will offset losses from the drop in AmerisourceBergen's long position.| SINOPHARM GROUP vs. FUYO GENERAL LEASE | SINOPHARM GROUP vs. Ribbon Communications | SINOPHARM GROUP vs. MOLSON RS BEVERAGE | SINOPHARM GROUP vs. SK TELECOM TDADR |
| AmerisourceBergen vs. CENTURIA OFFICE REIT | AmerisourceBergen vs. Townsquare Media | AmerisourceBergen vs. CITY OFFICE REIT | AmerisourceBergen vs. Melco Resorts Entertainment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |