Correlation Between Cansino Biologics and Nanning Chemical
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By analyzing existing cross correlation between Cansino Biologics and Nanning Chemical Industry, you can compare the effects of market volatilities on Cansino Biologics and Nanning Chemical 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 Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Nanning Chemical.
Diversification Opportunities for Cansino Biologics and Nanning Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cansino and Nanning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry 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 Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Nanning Chemical go up and down completely randomly.
Pair Corralation between Cansino Biologics and Nanning Chemical
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Nanning Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Cansino Biologics is 1.02 times less risky than Nanning Chemical. The stock trades about -0.07 of its potential returns per unit of risk. The Nanning Chemical Industry is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,690 in Nanning Chemical Industry on November 7, 2024 and sell it today you would earn a total of 72.00 from holding Nanning Chemical Industry or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cansino Biologics vs. Nanning Chemical Industry
Performance |
| Timeline |
| Cansino Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nanning Chemical Industry |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cansino Biologics and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Nanning Chemical
The main advantage of trading using opposite Cansino Biologics and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical's long position.The idea behind Cansino Biologics and Nanning Chemical Industry 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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