Correlation Between Alpha Teknova and Sunshine Biopharma

Can any of the company-specific risk be diversified away by investing in both Alpha Teknova and Sunshine Biopharma 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 Alpha Teknova and Sunshine Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpha Teknova and Sunshine Biopharma, you can compare the effects of market volatilities on Alpha Teknova and Sunshine Biopharma 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 Alpha Teknova with a short position of Sunshine Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Teknova and Sunshine Biopharma.

Diversification Opportunities for Alpha Teknova and Sunshine Biopharma

-0.48

Correlation Coefficient

Alpha Teknova  Sunshine Biopharma

Very good diversification

The 3 months correlation between Alpha and Sunshine is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Teknova and Sunshine Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunshine Biopharma and Alpha Teknova 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 Alpha Teknova are associated (or correlated) with Sunshine Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunshine Biopharma has no effect on the direction of Alpha Teknova i.e., Alpha Teknova and Sunshine Biopharma go up and down completely randomly.

Pair Corralation between Alpha Teknova and Sunshine Biopharma

Given the investment horizon of 90 days Alpha Teknova is expected to under-perform the Sunshine Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Alpha Teknova is 1.08 times less risky than Sunshine Biopharma. The stock trades about -0.1 of its potential returns per unit of risk. The Sunshine Biopharma is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  131.00  in Sunshine Biopharma on May 6, 2025 and sell it today you would earn a total of  15.00  from holding Sunshine Biopharma or generate 11.45% return on investment over 90 days.

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

Alpha Teknova  vs.  Sunshine Biopharma

Alpha Teknova

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alpha Teknova has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Sunshine Biopharma

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sunshine Biopharma are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, Sunshine Biopharma displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alpha Teknova and Sunshine Biopharma

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

The idea behind Alpha Teknova and Sunshine Biopharma 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.