Correlation Between SynCore Biotechnology and Thye Ming

Can any of the company-specific risk be diversified away by investing in both SynCore Biotechnology and Thye Ming 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 SynCore Biotechnology and Thye Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SynCore Biotechnology Co and Thye Ming Industrial, you can compare the effects of market volatilities on SynCore Biotechnology and Thye Ming 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 SynCore Biotechnology with a short position of Thye Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of SynCore Biotechnology and Thye Ming.

Diversification Opportunities for SynCore Biotechnology and Thye Ming

-0.22

Correlation Coefficient

SynCore Biotechnology  Thye Ming

Very good diversification

The 3 months correlation between SynCore and Thye is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SynCore Biotechnology Co and Thye Ming Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thye Ming Industrial and SynCore Biotechnology 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 SynCore Biotechnology Co are associated (or correlated) with Thye Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thye Ming Industrial has no effect on the direction of SynCore Biotechnology i.e., SynCore Biotechnology and Thye Ming go up and down completely randomly.

Pair Corralation between SynCore Biotechnology and Thye Ming

Assuming the 90 days trading horizon SynCore Biotechnology Co is expected to under-perform the Thye Ming. In addition to that, SynCore Biotechnology is 3.72 times more volatile than Thye Ming Industrial. It trades about -0.01 of its total potential returns per unit of risk. Thye Ming Industrial is currently generating about 0.41 per unit of volatility. If you would invest  6,300  in Thye Ming Industrial on December 22, 2024 and sell it today you would earn a total of  1,230  from holding Thye Ming Industrial or generate 19.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SynCore Biotechnology Co  vs.  Thye Ming Industrial

SynCore Biotechnology

Risk-Adjusted Performance

Very Weak

Over the last 90 days SynCore Biotechnology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SynCore Biotechnology is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Thye Ming Industrial

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Thye Ming Industrial are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Thye Ming showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SynCore Biotechnology and Thye Ming

The main advantage of trading using opposite SynCore Biotechnology and Thye Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SynCore Biotechnology position performs unexpectedly, Thye Ming 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 Thye Ming will offset losses from the drop in Thye Ming's long position.

The idea behind SynCore Biotechnology Co and Thye Ming Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.