Correlation Between Sinocelltech Group and Cansino Biologics
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By analyzing existing cross correlation between Sinocelltech Group and Cansino Biologics, you can compare the effects of market volatilities on Sinocelltech Group and Cansino Biologics 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 Sinocelltech Group with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocelltech Group and Cansino Biologics.
Diversification Opportunities for Sinocelltech Group and Cansino Biologics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinocelltech and Cansino is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sinocelltech Group and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Sinocelltech Group 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 Sinocelltech Group are associated (or correlated) with Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Sinocelltech Group i.e., Sinocelltech Group and Cansino Biologics go up and down completely randomly.
Pair Corralation between Sinocelltech Group and Cansino Biologics
Assuming the 90 days trading horizon Sinocelltech Group is expected to under-perform the Cansino Biologics. But the stock apears to be less risky and, when comparing its historical volatility, Sinocelltech Group is 1.17 times less risky than Cansino Biologics. The stock trades about -0.01 of its potential returns per unit of risk. The Cansino Biologics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,389 in Cansino Biologics on November 8, 2024 and sell it today you would earn a total of 640.00 from holding Cansino Biologics or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocelltech Group vs. Cansino Biologics
Performance |
| Timeline |
| Sinocelltech Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cansino Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sinocelltech Group and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocelltech Group and Cansino Biologics
The main advantage of trading using opposite Sinocelltech Group and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocelltech Group position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.The idea behind Sinocelltech Group and Cansino Biologics 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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