Correlation Between ELYM Old and Sunshine Biopharma

Can any of the company-specific risk be diversified away by investing in both ELYM Old and Sunshine Biopharma 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 ELYM Old and Sunshine Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ELYM Old and Sunshine Biopharma Warrant, you can compare the effects of market volatilities on ELYM Old and Sunshine Biopharma 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 ELYM Old with a short position of Sunshine Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELYM Old and Sunshine Biopharma.

Diversification Opportunities for ELYM Old and Sunshine Biopharma

0.0

Correlation Coefficient

ELYM Old  Sunshine Biopharma

Pay attention - limited upside

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

Pair Corralation between ELYM Old and Sunshine Biopharma

If you would invest  18.00  in Sunshine Biopharma Warrant on December 1, 2024 and sell it today you would lose (2.00) from holding Sunshine Biopharma Warrant or give up 11.11% of portfolio value over 90 days.

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

ELYM Old  vs.  Sunshine Biopharma Warrant

ELYM Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days ELYM Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, ELYM Old is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Sunshine Biopharma

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sunshine Biopharma Warrant are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating primary indicators, Sunshine Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ELYM Old and Sunshine Biopharma

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

The idea behind ELYM Old and Sunshine Biopharma Warrant 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.