Correlation Between SBC Medical and Nascent Wine

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

By analyzing existing cross correlation between SBC Medical Group and Nascent Wine, you can compare the effects of market volatilities on SBC Medical and Nascent Wine 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 SBC Medical with a short position of Nascent Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBC Medical and Nascent Wine.

Diversification Opportunities for SBC Medical and Nascent Wine

0.0

Correlation Coefficient

SBC Medical  Nascent Wine

Pay attention - limited upside

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

Pair Corralation between SBC Medical and Nascent Wine

If you would invest  0.01  in Nascent Wine on December 19, 2024 and sell it today you would lose  0.00  from holding Nascent Wine or give up 0.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	88.33%
Values	Daily Returns

SBC Medical Group  vs.  Nascent Wine

SBC Medical Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days SBC Medical Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile 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.

Nascent Wine

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SBC Medical and Nascent Wine

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

The idea behind SBC Medical Group and Nascent Wine 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.