Correlation Between Marizyme and Sino Biopharmaceutica

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

By analyzing existing cross correlation between Marizyme and Sino Biopharmaceutical Ltd, you can compare the effects of market volatilities on Marizyme and Sino Biopharmaceutica 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 Marizyme with a short position of Sino Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marizyme and Sino Biopharmaceutica.

Diversification Opportunities for Marizyme and Sino Biopharmaceutica

0.09

Correlation Coefficient

Marizyme  Sino Biopharmaceutica

Significant diversification

The 3 months correlation between Marizyme and Sino is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Marizyme and Sino Biopharmaceutical Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Biopharmaceutical and Marizyme 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 Marizyme are associated (or correlated) with Sino Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Biopharmaceutical has no effect on the direction of Marizyme i.e., Marizyme and Sino Biopharmaceutica go up and down completely randomly.

Pair Corralation between Marizyme and Sino Biopharmaceutica

Given the investment horizon of 90 days Marizyme is expected to generate 51.53 times more return on investment than Sino Biopharmaceutica. However, Marizyme is 51.53 times more volatile than Sino Biopharmaceutical Ltd. It trades about 0.12 of its potential returns per unit of risk. Sino Biopharmaceutical Ltd is currently generating about 0.06 per unit of risk. If you would invest  2.00  in Marizyme on December 22, 2024 and sell it today you would lose (1.39) from holding Marizyme or give up 69.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Marizyme  vs.  Sino Biopharmaceutical Ltd

Marizyme

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marizyme are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Marizyme displayed solid returns over the last few months and may actually be approaching a breakup point.

Sino Biopharmaceutical

Risk-Adjusted Performance

Modest

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

Pair Trading with Marizyme and Sino Biopharmaceutica

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

The idea behind Marizyme and Sino Biopharmaceutical Ltd 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.