Correlation Between Cansino Biologics and Zhongshan Public
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cansino Biologics and Zhongshan Public Utilities, you can compare the effects of market volatilities on Cansino Biologics and Zhongshan Public 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 Cansino Biologics with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Zhongshan Public.
Diversification Opportunities for Cansino Biologics and Zhongshan Public
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cansino and Zhongshan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Cansino Biologics 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 Cansino Biologics are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Zhongshan Public go up and down completely randomly.
Pair Corralation between Cansino Biologics and Zhongshan Public
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Zhongshan Public. In addition to that, Cansino Biologics is 2.08 times more volatile than Zhongshan Public Utilities. It trades about -0.01 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.04 per unit of volatility. If you would invest 700.00 in Zhongshan Public Utilities on November 8, 2024 and sell it today you would earn a total of 171.00 from holding Zhongshan Public Utilities or generate 24.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cansino Biologics vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Cansino Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Zhongshan Public Uti |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cansino Biologics and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Zhongshan Public
The main advantage of trading using opposite Cansino Biologics and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.The idea behind Cansino Biologics and Zhongshan Public Utilities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |