Correlation Between Cabio Biotech and Shenzhen Changfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cabio Biotech Wuhan and Shenzhen Changfang Light, you can compare the effects of market volatilities on Cabio Biotech and Shenzhen Changfang 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 Cabio Biotech with a short position of Shenzhen Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Shenzhen Changfang.
Diversification Opportunities for Cabio Biotech and Shenzhen Changfang
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cabio and Shenzhen is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light and Cabio Biotech 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 Cabio Biotech Wuhan are associated (or correlated) with Shenzhen Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Cabio Biotech i.e., Cabio Biotech and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Cabio Biotech and Shenzhen Changfang
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Shenzhen Changfang. But the stock apears to be less risky and, when comparing its historical volatility, Cabio Biotech Wuhan is 1.14 times less risky than Shenzhen Changfang. The stock trades about -0.01 of its potential returns per unit of risk. The Shenzhen Changfang Light is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 168.00 in Shenzhen Changfang Light on October 23, 2024 and sell it today you would earn a total of 25.00 from holding Shenzhen Changfang Light or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Shenzhen Changfang Light |
Cabio Biotech and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Shenzhen Changfang
The main advantage of trading using opposite Cabio Biotech and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech position performs unexpectedly, Shenzhen Changfang 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 Shenzhen Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Cabio Biotech vs. Jiangsu GDK Biotechnology | Cabio Biotech vs. Postal Savings Bank | Cabio Biotech vs. Hua Xia Bank | Cabio Biotech vs. Anhui Gujing Distillery |
| Shenzhen Changfang vs. Cabio Biotech Wuhan | Shenzhen Changfang vs. De Rucci Healthy | Shenzhen Changfang vs. Anhui Huaren Health | Shenzhen Changfang vs. Jiujiang Shanshui Technology |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |