Correlation Between Onyx Healthcare and Senao International

Can any of the company-specific risk be diversified away by investing in both Onyx Healthcare and Senao International 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 Onyx Healthcare and Senao International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Onyx Healthcare and Senao International Co, you can compare the effects of market volatilities on Onyx Healthcare and Senao International 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 Onyx Healthcare with a short position of Senao International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Healthcare and Senao International.

Diversification Opportunities for Onyx Healthcare and Senao International

0.0

Correlation Coefficient

Onyx Healthcare  Senao International

Pay attention - limited upside

The 3 months correlation between Onyx and Senao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Onyx Healthcare and Senao International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senao International and Onyx Healthcare 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 Onyx Healthcare are associated (or correlated) with Senao International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senao International has no effect on the direction of Onyx Healthcare i.e., Onyx Healthcare and Senao International go up and down completely randomly.

Pair Corralation between Onyx Healthcare and Senao International

If you would invest  14,800  in Onyx Healthcare on December 21, 2024 and sell it today you would earn a total of  850.00  from holding Onyx Healthcare or generate 5.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Onyx Healthcare  vs.  Senao International Co

Onyx Healthcare

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Onyx Healthcare are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Onyx Healthcare may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Senao International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Senao International Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Senao International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Onyx Healthcare and Senao International

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

The idea behind Onyx Healthcare and Senao International Co 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.