Correlation Between TC BioPharm and SINTX Technologies

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

By analyzing existing cross correlation between TC BioPharm plc and SINTX Technologies, you can compare the effects of market volatilities on TC BioPharm and SINTX Technologies 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 TC BioPharm with a short position of SINTX Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of TC BioPharm and SINTX Technologies.

Diversification Opportunities for TC BioPharm and SINTX Technologies

0.19

Correlation Coefficient

TC BioPharm  SINTX Technologies

Average diversification

The 3 months correlation between TCBPW and SINTX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TC BioPharm plc and SINTX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINTX Technologies and TC BioPharm 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 TC BioPharm plc are associated (or correlated) with SINTX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINTX Technologies has no effect on the direction of TC BioPharm i.e., TC BioPharm and SINTX Technologies go up and down completely randomly.

Pair Corralation between TC BioPharm and SINTX Technologies

Assuming the 90 days horizon TC BioPharm plc is expected to generate 1.43 times more return on investment than SINTX Technologies. However, TC BioPharm is 1.43 times more volatile than SINTX Technologies. It trades about 0.02 of its potential returns per unit of risk. SINTX Technologies is currently generating about 0.01 per unit of risk. If you would invest  1.01  in TC BioPharm plc on December 27, 2024 and sell it today you would lose (0.41) from holding TC BioPharm plc or give up 40.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.08%
Values	Daily Returns

TC BioPharm plc  vs.  SINTX Technologies

TC BioPharm plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TC BioPharm plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, TC BioPharm showed solid returns over the last few months and may actually be approaching a breakup point.

SINTX Technologies

Risk-Adjusted Performance

Very Weak

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

Pair Trading with TC BioPharm and SINTX Technologies

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

The idea behind TC BioPharm plc and SINTX Technologies 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.