Correlation Between Cansino Biologics and Changchun
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By analyzing existing cross correlation between Cansino Biologics and Changchun UP Optotech, you can compare the effects of market volatilities on Cansino Biologics and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Changchun.
Diversification Opportunities for Cansino Biologics and Changchun
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cansino and Changchun is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Changchun go up and down completely randomly.
Pair Corralation between Cansino Biologics and Changchun
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Changchun. But the stock apears to be less risky and, when comparing its historical volatility, Cansino Biologics is 1.25 times less risky than Changchun. The stock trades about -0.47 of its potential returns per unit of risk. The Changchun UP Optotech is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest 4,284 in Changchun UP Optotech on October 11, 2024 and sell it today you would lose (628.00) from holding Changchun UP Optotech or give up 14.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cansino Biologics vs. Changchun UP Optotech
Performance |
| Timeline |
| Cansino Biologics |
| Changchun UP Optotech |
Cansino Biologics and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Changchun
The main advantage of trading using opposite Cansino Biologics and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Cansino Biologics vs. Sichuan Fulin Transportation | Cansino Biologics vs. Chengdu Xinzhu RoadBridge | Cansino Biologics vs. Oppein Home Group | Cansino Biologics vs. DO Home Collection |
| Changchun vs. Sinofibers Technology Co | Changchun vs. Cultural Investment Holdings | Changchun vs. Shanghai Material Trading | Changchun vs. Dhc Software 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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