Correlation Between Cowealth Medical and Cansino Biologics
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By analyzing existing cross correlation between Cowealth Medical China and Cansino Biologics, you can compare the effects of market volatilities on Cowealth Medical 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 Cowealth Medical with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cowealth Medical and Cansino Biologics.
Diversification Opportunities for Cowealth Medical and Cansino Biologics
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cowealth and Cansino is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cowealth Medical China and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Cowealth Medical 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 Cowealth Medical China 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 Cowealth Medical i.e., Cowealth Medical and Cansino Biologics go up and down completely randomly.
Pair Corralation between Cowealth Medical and Cansino Biologics
Assuming the 90 days trading horizon Cowealth Medical China is expected to generate 0.97 times more return on investment than Cansino Biologics. However, Cowealth Medical China is 1.03 times less risky than Cansino Biologics. It trades about 0.04 of its potential returns per unit of risk. Cansino Biologics is currently generating about 0.03 per unit of risk. If you would invest 554.00 in Cowealth Medical China on November 2, 2024 and sell it today you would earn a total of 133.00 from holding Cowealth Medical China or generate 24.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cowealth Medical China vs. Cansino Biologics
Performance |
| Timeline |
| Cowealth Medical China |
| Cansino Biologics |
Cowealth Medical and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cowealth Medical and Cansino Biologics
The main advantage of trading using opposite Cowealth Medical and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cowealth Medical 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.| Cowealth Medical vs. Western Metal Materials | Cowealth Medical vs. Henan Shuanghui Investment | Cowealth Medical vs. Universal Scientific Industrial | Cowealth Medical vs. Hengli Industrial Development |
| Cansino Biologics vs. Thinkon Semiconductor Jinzhou | Cansino Biologics vs. Huizhou Speed Wireless | Cansino Biologics vs. Southchip Semiconductor Technology | Cansino Biologics vs. Bohai Leasing 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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