Correlation Between Cansino Biologics and Shandong Iron
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By analyzing existing cross correlation between Cansino Biologics and Shandong Iron and, you can compare the effects of market volatilities on Cansino Biologics and Shandong Iron 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 Shandong Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Shandong Iron.
Diversification Opportunities for Cansino Biologics and Shandong Iron
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cansino and Shandong is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Shandong Iron and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Iron 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 Shandong Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Iron has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Shandong Iron go up and down completely randomly.
Pair Corralation between Cansino Biologics and Shandong Iron
Assuming the 90 days trading horizon Cansino Biologics is expected to generate 1.23 times more return on investment than Shandong Iron. However, Cansino Biologics is 1.23 times more volatile than Shandong Iron and. It trades about -0.07 of its potential returns per unit of risk. Shandong Iron and is currently generating about -0.21 per unit of risk. If you would invest 6,021 in Cansino Biologics on October 26, 2024 and sell it today you would lose (220.00) from holding Cansino Biologics or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cansino Biologics vs. Shandong Iron and
Performance |
| Timeline |
| Cansino Biologics |
| Shandong Iron |
Cansino Biologics and Shandong Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Shandong Iron
The main advantage of trading using opposite Cansino Biologics and Shandong Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Shandong Iron 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 Shandong Iron will offset losses from the drop in Shandong Iron's long position.| Cansino Biologics vs. Zhejiang Yongjin Metal | Cansino Biologics vs. Guangdong Jingyi Metal | Cansino Biologics vs. Harvest Fund Management | Cansino Biologics vs. Ningbo Jintian Copper |
| Shandong Iron vs. Innovative Medical Management | Shandong Iron vs. De Rucci Healthy | Shandong Iron vs. Hubei Xingfa Chemicals | Shandong Iron vs. Anhui Huaren Health |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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