Correlation Between EPSILON HEALTHCARE and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE 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 EPSILON HEALTHCARE and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPSILON HEALTHCARE LTD and CanSino Biologics, you can compare the effects of market volatilities on EPSILON HEALTHCARE 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 EPSILON HEALTHCARE with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and CanSino Biologics.
Diversification Opportunities for EPSILON HEALTHCARE and CanSino Biologics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and CanSino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE 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 EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and CanSino Biologics go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and CanSino Biologics
If you would invest 394.00 in CanSino Biologics on September 14, 2024 and sell it today you would earn a total of 4.00 from holding CanSino Biologics or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. CanSino Biologics
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| CanSino Biologics |
EPSILON HEALTHCARE and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and CanSino Biologics
The main advantage of trading using opposite EPSILON HEALTHCARE and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE 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.| EPSILON HEALTHCARE vs. Merck Company | EPSILON HEALTHCARE vs. Elanco Animal Health | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. NMI Holdings |
| 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 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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