Correlation Between Cabio Biotech and Cansino Biologics
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Cansino Biologics, you can compare the effects of market volatilities on Cabio Biotech 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 Cabio Biotech with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Cansino Biologics.
Diversification Opportunities for Cabio Biotech and Cansino Biologics
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cabio and Cansino is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 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 Cabio Biotech i.e., Cabio Biotech and Cansino Biologics go up and down completely randomly.
Pair Corralation between Cabio Biotech and Cansino Biologics
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Cansino Biologics. In addition to that, Cabio Biotech is 1.52 times more volatile than Cansino Biologics. It trades about -0.4 of its total potential returns per unit of risk. Cansino Biologics is currently generating about -0.41 per unit of volatility. If you would invest 6,755 in Cansino Biologics on October 12, 2024 and sell it today you would lose (1,045) from holding Cansino Biologics or give up 15.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Cansino Biologics
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Cansino Biologics |
Cabio Biotech and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Cansino Biologics
The main advantage of trading using opposite Cabio Biotech and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech 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.| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic Technology |
| Cansino Biologics vs. Sharetronic Data Technology | Cansino Biologics vs. HanS Laser Tech | Cansino Biologics vs. JiShi Media Co | Cansino Biologics vs. Cabio Biotech Wuhan |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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