Correlation Between Sosei Group and SanBio Company

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

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

Diversification Opportunities for Sosei Group and SanBio Company

-0.29

Correlation Coefficient

Sosei Group  SanBio Company

Very good diversification

The 3 months correlation between Sosei and SanBio is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sosei Group and SanBio Company Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SanBio Limited and Sosei Group 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 Sosei Group are associated (or correlated) with SanBio Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SanBio Limited has no effect on the direction of Sosei Group i.e., Sosei Group and SanBio Company go up and down completely randomly.

Pair Corralation between Sosei Group and SanBio Company

Assuming the 90 days horizon Sosei Group is expected to generate 11.66 times less return on investment than SanBio Company. But when comparing it to its historical volatility, Sosei Group is 3.57 times less risky than SanBio Company. It trades about 0.04 of its potential returns per unit of risk. SanBio Company Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  655.00  in SanBio Company Limited on May 4, 2025 and sell it today you would earn a total of  773.00  from holding SanBio Company Limited or generate 118.02% return on investment over 90 days.

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

Sosei Group  vs.  SanBio Company Limited

Sosei Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sosei Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sosei Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

SanBio Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SanBio Company Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady forward indicators, SanBio Company reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sosei Group and SanBio Company

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

The idea behind Sosei Group and SanBio Company Limited 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.