Correlation Between Allgens Medical and Cansino Biologics
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By analyzing existing cross correlation between Allgens Medical Technology and Cansino Biologics, you can compare the effects of market volatilities on Allgens Medical 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 Allgens Medical with a short position of Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Cansino Biologics.
Diversification Opportunities for Allgens Medical and Cansino Biologics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allgens and Cansino is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics and Allgens Medical 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 Allgens Medical Technology 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 Allgens Medical i.e., Allgens Medical and Cansino Biologics go up and down completely randomly.
Pair Corralation between Allgens Medical and Cansino Biologics
Assuming the 90 days trading horizon Allgens Medical Technology is expected to generate 0.93 times more return on investment than Cansino Biologics. However, Allgens Medical Technology is 1.08 times less risky than Cansino Biologics. It trades about -0.02 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.04 per unit of risk. If you would invest 2,716 in Allgens Medical Technology on November 2, 2024 and sell it today you would lose (1,085) from holding Allgens Medical Technology or give up 39.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. Cansino Biologics
Performance |
| Timeline |
| Allgens Medical Tech |
| Cansino Biologics |
Allgens Medical and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Cansino Biologics
The main advantage of trading using opposite Allgens Medical and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical 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.| Allgens Medical vs. Jiamei Food Packaging | Allgens Medical vs. China Life Insurance | Allgens Medical vs. Namchow Food Group | Allgens Medical vs. Beijing Kingsoft Office |
| Cansino Biologics vs. Integrated Electronic Systems | Cansino Biologics vs. Changjiang Publishing Media | Cansino Biologics vs. Dongnan Electronics Co | Cansino Biologics vs. Thinkingdom Media 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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