Correlation Between CanSino Biologics and 4Front Ventures
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and 4Front Ventures 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 CanSino Biologics and 4Front Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and 4Front Ventures Corp, you can compare the effects of market volatilities on CanSino Biologics and 4Front Ventures 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 CanSino Biologics with a short position of 4Front Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and 4Front Ventures.
Diversification Opportunities for CanSino Biologics and 4Front Ventures
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CanSino and 4Front is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and 4Front Ventures Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Front Ventures Corp and CanSino Biologics 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 CanSino Biologics are associated (or correlated) with 4Front Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Front Ventures Corp has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and 4Front Ventures go up and down completely randomly.
Pair Corralation between CanSino Biologics and 4Front Ventures
Assuming the 90 days horizon CanSino Biologics is expected to generate 0.39 times more return on investment than 4Front Ventures. However, CanSino Biologics is 2.55 times less risky than 4Front Ventures. It trades about 0.15 of its potential returns per unit of risk. 4Front Ventures Corp is currently generating about -0.31 per unit of risk. If you would invest 390.00 in CanSino Biologics on September 13, 2024 and sell it today you would earn a total of 45.00 from holding CanSino Biologics or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. 4Front Ventures Corp
Performance |
| Timeline |
| CanSino Biologics |
| 4Front Ventures Corp |
CanSino Biologics and 4Front Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and 4Front Ventures
The main advantage of trading using opposite CanSino Biologics and 4Front Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, 4Front Ventures 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 4Front Ventures will offset losses from the drop in 4Front Ventures' long position.| CanSino Biologics vs. 4Front Ventures Corp | CanSino Biologics vs. Khiron Life Sciences | CanSino Biologics vs. BellRock Brands | CanSino Biologics vs. Elixinol Global |
| 4Front Ventures vs. Khiron Life Sciences | 4Front Ventures vs. BellRock Brands | 4Front Ventures vs. Elixinol Global |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |