Correlation Between Reviva Pharmaceuticals and SAB Biotherapeutics

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

By analyzing existing cross correlation between Reviva Pharmaceuticals Holdings and SAB Biotherapeutics, you can compare the effects of market volatilities on Reviva Pharmaceuticals and SAB Biotherapeutics 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 Reviva Pharmaceuticals with a short position of SAB Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reviva Pharmaceuticals and SAB Biotherapeutics.

Diversification Opportunities for Reviva Pharmaceuticals and SAB Biotherapeutics

-0.53

Correlation Coefficient

Reviva Pharmaceuticals  SAB Biotherapeutics

Excellent diversification

The 3 months correlation between Reviva and SAB is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Reviva Pharmaceuticals Holding and SAB Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Biotherapeutics and Reviva Pharmaceuticals 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 Reviva Pharmaceuticals Holdings are associated (or correlated) with SAB Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Biotherapeutics has no effect on the direction of Reviva Pharmaceuticals i.e., Reviva Pharmaceuticals and SAB Biotherapeutics go up and down completely randomly.

Pair Corralation between Reviva Pharmaceuticals and SAB Biotherapeutics

Assuming the 90 days horizon Reviva Pharmaceuticals Holdings is expected to under-perform the SAB Biotherapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Reviva Pharmaceuticals Holdings is 1.1 times less risky than SAB Biotherapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The SAB Biotherapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2.53  in SAB Biotherapeutics on May 7, 2025 and sell it today you would earn a total of  0.47  from holding SAB Biotherapeutics or generate 18.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	91.8%
Values	Daily Returns

Reviva Pharmaceuticals Holding  vs.  SAB Biotherapeutics

Reviva Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Reviva Pharmaceuticals Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's technical indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

SAB Biotherapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SAB Biotherapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, SAB Biotherapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Reviva Pharmaceuticals and SAB Biotherapeutics

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

The idea behind Reviva Pharmaceuticals Holdings and SAB Biotherapeutics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.