Correlation Between Guangdong Xiongsu and Cansino Biologics
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Cansino Biologics, you can compare the effects of market volatilities on Guangdong Xiongsu 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 Guangdong Xiongsu with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Cansino Biologics.
Diversification Opportunities for Guangdong Xiongsu and Cansino Biologics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Cansino is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Guangdong Xiongsu 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 Guangdong Xiongsu Technology 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 Guangdong Xiongsu i.e., Guangdong Xiongsu and Cansino Biologics go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Cansino Biologics
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to generate 2.1 times more return on investment than Cansino Biologics. However, Guangdong Xiongsu is 2.1 times more volatile than Cansino Biologics. It trades about -0.07 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.15 per unit of risk. If you would invest 774.00 in Guangdong Xiongsu Technology on October 30, 2024 and sell it today you would lose (118.00) from holding Guangdong Xiongsu Technology or give up 15.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Cansino Biologics
Performance |
| Timeline |
| Guangdong Xiongsu |
| Cansino Biologics |
Guangdong Xiongsu and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Cansino Biologics
The main advantage of trading using opposite Guangdong Xiongsu and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu 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.| Guangdong Xiongsu vs. Jiangxi Hengda Hi Tech | Guangdong Xiongsu vs. China Sports Industry | Guangdong Xiongsu vs. Beijing Seeyon Internet | Guangdong Xiongsu vs. Kuang Chi Technologies |
| Cansino Biologics vs. Zhongyin Babi Food | Cansino Biologics vs. Zhejiang Construction Investment | Cansino Biologics vs. Guilin Seamild Foods | Cansino Biologics vs. Tsingtao Brewery Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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