Correlation Between Cansino Biologics and Wuhan Hvsen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cansino Biologics and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Cansino Biologics and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Wuhan Hvsen.
Diversification Opportunities for Cansino Biologics and Wuhan Hvsen
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cansino and Wuhan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Cansino Biologics and Wuhan Hvsen
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, Cansino Biologics is 1.4 times less risky than Wuhan Hvsen. The stock trades about -0.07 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 938.00 in Wuhan Hvsen Biotechnology on November 7, 2024 and sell it today you would earn a total of 99.00 from holding Wuhan Hvsen Biotechnology or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cansino Biologics vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Cansino Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wuhan Hvsen Biotechnology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cansino Biologics and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Wuhan Hvsen
The main advantage of trading using opposite Cansino Biologics and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.The idea behind Cansino Biologics and Wuhan Hvsen Biotechnology 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |