Correlation Between Cansino Biologics and Zhongtai Securities
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By analyzing existing cross correlation between Cansino Biologics and Zhongtai Securities Co, you can compare the effects of market volatilities on Cansino Biologics and Zhongtai Securities 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 Zhongtai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cansino Biologics and Zhongtai Securities.
Diversification Opportunities for Cansino Biologics and Zhongtai Securities
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cansino and Zhongtai is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and Zhongtai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtai Securities 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 Zhongtai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtai Securities has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and Zhongtai Securities go up and down completely randomly.
Pair Corralation between Cansino Biologics and Zhongtai Securities
Assuming the 90 days trading horizon Cansino Biologics is expected to under-perform the Zhongtai Securities. In addition to that, Cansino Biologics is 1.13 times more volatile than Zhongtai Securities Co. It trades about -0.4 of its total potential returns per unit of risk. Zhongtai Securities Co is currently generating about -0.32 per unit of volatility. If you would invest 700.00 in Zhongtai Securities Co on October 10, 2024 and sell it today you would lose (74.00) from holding Zhongtai Securities Co or give up 10.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cansino Biologics vs. Zhongtai Securities Co
Performance |
| Timeline |
| Cansino Biologics |
| Zhongtai Securities |
Cansino Biologics and Zhongtai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cansino Biologics and Zhongtai Securities
The main advantage of trading using opposite Cansino Biologics and Zhongtai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, Zhongtai Securities 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 Zhongtai Securities will offset losses from the drop in Zhongtai Securities' long position.| Cansino Biologics vs. Guangxi Wuzhou Communications | Cansino Biologics vs. Wangneng Environment Co | Cansino Biologics vs. Qiaoyin Environmental Tech | Cansino Biologics vs. Sinocat Environmental Technology |
| Zhongtai Securities vs. Agricultural Bank of | Zhongtai Securities vs. Industrial and Commercial | Zhongtai Securities vs. Bank of China | Zhongtai Securities vs. PetroChina Co Ltd |
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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