Correlation Between Cansino Biologics and Strait Innovation
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By analyzing existing cross correlation between Cansino Biologics and Strait Innovation Internet, you can compare the effects of market volatilities on Cansino Biologics and Strait Innovation 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 Strait Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Strait Innovation.
Diversification Opportunities for Cansino Biologics and Strait Innovation
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cansino and Strait is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Strait Innovation Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strait Innovation 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 Strait Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strait Innovation has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Strait Innovation go up and down completely randomly.
Pair Corralation between Cansino Biologics and Strait Innovation
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Strait Innovation. But the stock apears to be less risky and, when comparing its historical volatility, Cansino Biologics is 1.95 times less risky than Strait Innovation. The stock trades about -0.19 of its potential returns per unit of risk. The Strait Innovation Internet is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 288.00 in Strait Innovation Internet on October 31, 2024 and sell it today you would lose (5.00) from holding Strait Innovation Internet or give up 1.74% 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. Strait Innovation Internet
Performance |
| Timeline |
| Cansino Biologics |
| Strait Innovation |
Cansino Biologics and Strait Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Strait Innovation
The main advantage of trading using opposite Cansino Biologics and Strait Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Strait Innovation 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 Strait Innovation will offset losses from the drop in Strait Innovation's long position.| Cansino Biologics vs. Shenzhen AV Display Co | Cansino Biologics vs. Northking Information Technology | Cansino Biologics vs. Ningbo Ligong Online | Cansino Biologics vs. Eastern Air Logistics |
| Strait Innovation vs. Yindu Kitchen Equipment | Strait Innovation vs. V V Food | Strait Innovation vs. Youyou Foods Co | Strait Innovation vs. Jiahe Foods Industry |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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