Correlation Between Sino Biopharmaceutica and Sino Land

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

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

Diversification Opportunities for Sino Biopharmaceutica and Sino Land

0.0

Correlation Coefficient

Sino Biopharmaceutica  Sino Land

Pay attention - limited upside

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

Pair Corralation between Sino Biopharmaceutica and Sino Land

If you would invest  90.00  in Sino Land on December 21, 2024 and sell it today you would earn a total of  3.00  from holding Sino Land or generate 3.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Sino Biopharmaceutical Limited  vs.  Sino Land

Sino Biopharmaceutical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sino Biopharmaceutical Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sino Biopharmaceutica is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Sino Land

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sino Land are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sino Land may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Sino Biopharmaceutica and Sino Land

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

The idea behind Sino Biopharmaceutical Limited and Sino Land 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.