Correlation Between Wiwynn Corp and Golden Biotechnology

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

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

Diversification Opportunities for Wiwynn Corp and Golden Biotechnology

0.38

Correlation Coefficient

Wiwynn Corp  Golden Biotechnology

Weak diversification

The 3 months correlation between Wiwynn and Golden is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Golden Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Biotechnology and Wiwynn Corp 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 Wiwynn Corp are associated (or correlated) with Golden Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Biotechnology has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Golden Biotechnology go up and down completely randomly.

Pair Corralation between Wiwynn Corp and Golden Biotechnology

Assuming the 90 days trading horizon Wiwynn Corp is expected to under-perform the Golden Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Wiwynn Corp is 1.0 times less risky than Golden Biotechnology. The stock trades about -0.14 of its potential returns per unit of risk. The Golden Biotechnology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,550  in Golden Biotechnology on December 24, 2024 and sell it today you would lose (35.00) from holding Golden Biotechnology or give up 2.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Wiwynn Corp  vs.  Golden Biotechnology

Wiwynn Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wiwynn Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Golden Biotechnology

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Wiwynn Corp and Golden Biotechnology

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

The idea behind Wiwynn Corp and Golden Biotechnology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.