Correlation Between DO Home and Cansino Biologics
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By analyzing existing cross correlation between DO Home Collection and Cansino Biologics, you can compare the effects of market volatilities on DO Home and Cansino Biologics 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 DO Home with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Cansino Biologics.
Diversification Opportunities for DO Home and Cansino Biologics
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002798 and Cansino is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and DO Home 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 DO Home Collection are associated (or correlated) with Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of DO Home i.e., DO Home and Cansino Biologics go up and down completely randomly.
Pair Corralation between DO Home and Cansino Biologics
Assuming the 90 days trading horizon DO Home Collection is expected to under-perform the Cansino Biologics. In addition to that, DO Home is 2.76 times more volatile than Cansino Biologics. It trades about -0.21 of its total potential returns per unit of risk. Cansino Biologics is currently generating about -0.44 per unit of volatility. If you would invest 6,849 in Cansino Biologics on October 11, 2024 and sell it today you would lose (1,139) from holding Cansino Biologics or give up 16.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. Cansino Biologics
Performance |
| Timeline |
| DO Home Collection |
| Cansino Biologics |
DO Home and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Cansino Biologics
The main advantage of trading using opposite DO Home and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| DO Home vs. Chison Medical Technologies | DO Home vs. Tinavi Medical Technologies | DO Home vs. Chengdu B ray Media | DO Home vs. Threes Company Media |
| Cansino Biologics vs. Sichuan Fulin Transportation | Cansino Biologics vs. Chengdu Xinzhu RoadBridge | Cansino Biologics vs. Oppein Home Group | Cansino Biologics vs. DO Home Collection |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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