Correlation Between Cansino Biologics and Guangdong Tianhe
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By analyzing existing cross correlation between Cansino Biologics and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Cansino Biologics and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Guangdong Tianhe.
Diversification Opportunities for Cansino Biologics and Guangdong Tianhe
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cansino and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Cansino Biologics and Guangdong Tianhe
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Guangdong Tianhe. In addition to that, Cansino Biologics is 1.21 times more volatile than Guangdong Tianhe Agricultural. It trades about -0.04 of its total potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.03 per unit of volatility. If you would invest 954.00 in Guangdong Tianhe Agricultural on September 26, 2024 and sell it today you would lose (365.00) from holding Guangdong Tianhe Agricultural or give up 38.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cansino Biologics vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Cansino Biologics |
| Guangdong Tianhe Agr |
Cansino Biologics and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Guangdong Tianhe
The main advantage of trading using opposite Cansino Biologics and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Cansino Biologics vs. Agricultural Bank of | Cansino Biologics vs. Industrial and Commercial | Cansino Biologics vs. Bank of China | Cansino Biologics vs. China Construction Bank |
| Guangdong Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe vs. Shandong Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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