Correlation Between HanS Laser and Cabio Biotech
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By analyzing existing cross correlation between HanS Laser Tech and Cabio Biotech Wuhan, you can compare the effects of market volatilities on HanS Laser and Cabio Biotech 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 HanS Laser with a short position of Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Cabio Biotech.
Diversification Opportunities for HanS Laser and Cabio Biotech
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HanS and Cabio is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan and HanS Laser 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 HanS Laser Tech are associated (or correlated) with Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of HanS Laser i.e., HanS Laser and Cabio Biotech go up and down completely randomly.
Pair Corralation between HanS Laser and Cabio Biotech
Assuming the 90 days trading horizon HanS Laser is expected to generate 1.31 times less return on investment than Cabio Biotech. But when comparing it to its historical volatility, HanS Laser Tech is 1.46 times less risky than Cabio Biotech. It trades about 0.36 of its potential returns per unit of risk. Cabio Biotech Wuhan is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,784 in Cabio Biotech Wuhan on November 4, 2024 and sell it today you would earn a total of 221.00 from holding Cabio Biotech Wuhan or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Cabio Biotech Wuhan
Performance |
| Timeline |
| HanS Laser Tech |
| Cabio Biotech Wuhan |
HanS Laser and Cabio Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Cabio Biotech
The main advantage of trading using opposite HanS Laser and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.| HanS Laser vs. Marssenger Kitchenware Co | HanS Laser vs. Iat Automobile Technology | HanS Laser vs. Linewell Software Co | HanS Laser vs. Tianjin Ruixin Technology |
| Cabio Biotech vs. Air China Ltd | Cabio Biotech vs. Hubei Tech Semiconductors | Cabio Biotech vs. Suzhou Oriental Semiconductor | Cabio Biotech vs. Fujian Oriental Silver |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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