Correlation Between Xinke Material and Cansino Biologics
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By analyzing existing cross correlation between Xinke Material and Cansino Biologics, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Cansino Biologics.
Diversification Opportunities for Xinke Material and Cansino Biologics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinke and Cansino is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and Cansino Biologics go up and down completely randomly.
Pair Corralation between Xinke Material and Cansino Biologics
Assuming the 90 days trading horizon Xinke Material is expected to generate 3.98 times more return on investment than Cansino Biologics. However, Xinke Material is 3.98 times more volatile than Cansino Biologics. It trades about 0.28 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.46 per unit of risk. If you would invest 273.00 in Xinke Material on October 11, 2024 and sell it today you would earn a total of 127.00 from holding Xinke Material or generate 46.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Cansino Biologics
Performance |
| Timeline |
| Xinke Material |
| Cansino Biologics |
Xinke Material and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Cansino Biologics
The main advantage of trading using opposite Xinke Material and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Semiconductor Manufacturing Electronics | Xinke Material vs. Jiujiang Shanshui Technology | Xinke Material vs. Jinlong Machinery Electronic | Xinke Material vs. Success Electronics |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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