Correlation Between LIFE BANC and Sino AG

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

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

Diversification Opportunities for LIFE BANC and Sino AG

0.81

Correlation Coefficient

LIFE BANC  Sino AG

Very poor diversification

The 3 months correlation between LIFE and Sino is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding LIFE BANC SPLIT and Sino AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino AG and LIFE BANC 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 LIFE BANC SPLIT are associated (or correlated) with Sino AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino AG has no effect on the direction of LIFE BANC i.e., LIFE BANC and Sino AG go up and down completely randomly.

Pair Corralation between LIFE BANC and Sino AG

Assuming the 90 days horizon LIFE BANC is expected to generate 1.74 times less return on investment than Sino AG. In addition to that, LIFE BANC is 1.26 times more volatile than Sino AG. It trades about 0.09 of its total potential returns per unit of risk. Sino AG is currently generating about 0.19 per unit of volatility. If you would invest  8,660  in Sino AG on May 7, 2025 and sell it today you would earn a total of  1,940  from holding Sino AG or generate 22.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

LIFE BANC SPLIT  vs.  Sino AG

LIFE BANC SPLIT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in LIFE BANC SPLIT are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, LIFE BANC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Sino AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sino AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sino AG reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LIFE BANC and Sino AG

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

The idea behind LIFE BANC SPLIT and Sino AG 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.