Correlation Between Sinovac Biotech and SciClone Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Sinovac Biotech and SciClone Pharmaceuticals 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 Sinovac Biotech and SciClone Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinovac Biotech and SciClone Pharmaceuticals, you can compare the effects of market volatilities on Sinovac Biotech and SciClone Pharmaceuticals 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 Sinovac Biotech with a short position of SciClone Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinovac Biotech and SciClone Pharmaceuticals.
Diversification Opportunities for Sinovac Biotech and SciClone Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinovac and SciClone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sinovac Biotech and SciClone Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SciClone Pharmaceuticals and Sinovac Biotech 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 Sinovac Biotech are associated (or correlated) with SciClone Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SciClone Pharmaceuticals has no effect on the direction of Sinovac Biotech i.e., Sinovac Biotech and SciClone Pharmaceuticals go up and down completely randomly.
Pair Corralation between Sinovac Biotech and SciClone Pharmaceuticals
If you would invest (100.00) in SciClone Pharmaceuticals on January 19, 2024 and sell it today you would earn a total of 100.00 from holding SciClone Pharmaceuticals or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinovac Biotech vs. SciClone Pharmaceuticals
Performance |
| Timeline |
| Sinovac Biotech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SciClone Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sinovac Biotech and SciClone Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinovac Biotech and SciClone Pharmaceuticals
The main advantage of trading using opposite Sinovac Biotech and SciClone Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinovac Biotech position performs unexpectedly, SciClone Pharmaceuticals 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 SciClone Pharmaceuticals will offset losses from the drop in SciClone Pharmaceuticals' long position.| Sinovac Biotech vs. Aerovate Therapeutics | Sinovac Biotech vs. Anebulo Pharmaceuticals | Sinovac Biotech vs. Mineralys Therapeutics Common | Sinovac Biotech vs. Enliven Therapeutics |
| SciClone Pharmaceuticals vs. Biglari Holdings | SciClone Pharmaceuticals vs. Rave Restaurant Group | SciClone Pharmaceuticals vs. The Cheesecake Factory | SciClone Pharmaceuticals vs. Ark Restaurants Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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