Correlation Between TOREX SEMICONDUCTOR and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both TOREX SEMICONDUCTOR and CanSino Biologics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TOREX SEMICONDUCTOR and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOREX SEMICONDUCTOR LTD and CanSino Biologics, you can compare the effects of market volatilities on TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOREX SEMICONDUCTOR and CanSino Biologics.
Diversification Opportunities for TOREX SEMICONDUCTOR and CanSino Biologics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TOREX and CanSino is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding TOREX SEMICONDUCTOR LTD and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR i.e., TOREX SEMICONDUCTOR and CanSino Biologics go up and down completely randomly.
Pair Corralation between TOREX SEMICONDUCTOR and CanSino Biologics
Assuming the 90 days horizon TOREX SEMICONDUCTOR LTD is expected to under-perform the CanSino Biologics. But the stock apears to be less risky and, when comparing its historical volatility, TOREX SEMICONDUCTOR LTD is 1.69 times less risky than CanSino Biologics. The stock trades about -0.04 of its potential returns per unit of risk. The CanSino Biologics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 325.00 in CanSino Biologics on September 14, 2024 and sell it today you would earn a total of 73.00 from holding CanSino Biologics or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOREX SEMICONDUCTOR LTD vs. CanSino Biologics
Performance |
| Timeline |
| TOREX SEMICONDUCTOR LTD |
| CanSino Biologics |
TOREX SEMICONDUCTOR and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOREX SEMICONDUCTOR and CanSino Biologics
The main advantage of trading using opposite TOREX SEMICONDUCTOR and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOREX SEMICONDUCTOR 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.| TOREX SEMICONDUCTOR vs. Carsales | TOREX SEMICONDUCTOR vs. Cal Maine Foods | TOREX SEMICONDUCTOR vs. National Beverage Corp | TOREX SEMICONDUCTOR vs. Collins Foods Limited |
| CanSino Biologics vs. TOREX SEMICONDUCTOR LTD | CanSino Biologics vs. IMAGIN MEDICAL INC | CanSino Biologics vs. Microbot Medical | CanSino Biologics vs. Tower Semiconductor |
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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