Correlation Between USWE SPORTS and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and CanSino Biologics, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and CanSino Biologics.
Diversification Opportunities for USWE SPORTS and CanSino Biologics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USWE and CanSino is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and CanSino Biologics go up and down completely randomly.
Pair Corralation between USWE SPORTS and CanSino Biologics
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 0.8 times more return on investment than CanSino Biologics. However, USWE SPORTS AB is 1.25 times less risky than CanSino Biologics. It trades about 0.31 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.19 per unit of risk. If you would invest 74.00 in USWE SPORTS AB on October 30, 2024 and sell it today you would earn a total of 11.00 from holding USWE SPORTS AB or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. CanSino Biologics
Performance |
| Timeline |
| USWE SPORTS AB |
| CanSino Biologics |
USWE SPORTS and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and CanSino Biologics
The main advantage of trading using opposite USWE SPORTS and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. GAMESTOP | USWE SPORTS vs. Media and Games | USWE SPORTS vs. Boyd Gaming | USWE SPORTS vs. PARKEN Sport Entertainment |
| CanSino Biologics vs. Verizon Communications | CanSino Biologics vs. The Boston Beer | CanSino Biologics vs. National Beverage Corp | CanSino Biologics vs. Fevertree Drinks PLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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