Correlation Between Cansino Biologics and Zhongzhu Medical
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By analyzing existing cross correlation between Cansino Biologics and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Cansino Biologics and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Zhongzhu Medical.
Diversification Opportunities for Cansino Biologics and Zhongzhu Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cansino and Zhongzhu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Cansino Biologics and Zhongzhu Medical
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Zhongzhu Medical. In addition to that, Cansino Biologics is 1.54 times more volatile than Zhongzhu Medical Holdings. It trades about -0.04 of its total potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.03 per unit of volatility. If you would invest 186.00 in Zhongzhu Medical Holdings on November 2, 2024 and sell it today you would lose (60.00) from holding Zhongzhu Medical Holdings or give up 32.26% 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. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Cansino Biologics |
| Zhongzhu Medical Holdings |
Cansino Biologics and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Zhongzhu Medical
The main advantage of trading using opposite Cansino Biologics and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Cansino Biologics vs. Integrated Electronic Systems | Cansino Biologics vs. Changjiang Publishing Media | Cansino Biologics vs. Dongnan Electronics Co | Cansino Biologics vs. Thinkingdom Media Group |
| Zhongzhu Medical vs. CIMC Vehicles Co | Zhongzhu Medical vs. Haima Automobile Group | Zhongzhu Medical vs. Ping An Insurance | Zhongzhu Medical vs. Guangzhou Automobile Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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