Correlation Between Guilin Seamild and Cansino Biologics
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By analyzing existing cross correlation between Guilin Seamild Foods and Cansino Biologics, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Cansino Biologics.
Diversification Opportunities for Guilin Seamild and Cansino Biologics
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guilin and Cansino is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Cansino Biologics go up and down completely randomly.
Pair Corralation between Guilin Seamild and Cansino Biologics
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.13 times more return on investment than Cansino Biologics. However, Guilin Seamild is 1.13 times more volatile than Cansino Biologics. It trades about 0.04 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.07 per unit of risk. If you would invest 1,557 in Guilin Seamild Foods on November 7, 2024 and sell it today you would earn a total of 19.00 from holding Guilin Seamild Foods or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Cansino Biologics
Performance |
| Timeline |
| Guilin Seamild Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Cansino Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guilin Seamild and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Cansino Biologics
The main advantage of trading using opposite Guilin Seamild and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.The idea behind Guilin Seamild Foods and Cansino Biologics 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.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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