Correlation Between CanSino Biologics and New Horizon
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and New Horizon 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 New Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and New Horizon Aircraft, you can compare the effects of market volatilities on CanSino Biologics and New Horizon 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 New Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and New Horizon.
Diversification Opportunities for CanSino Biologics and New Horizon
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CanSino and New is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and New Horizon Aircraft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Horizon Aircraft 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 New Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Horizon Aircraft has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and New Horizon go up and down completely randomly.
Pair Corralation between CanSino Biologics and New Horizon
Assuming the 90 days horizon CanSino Biologics is expected to generate 0.17 times more return on investment than New Horizon. However, CanSino Biologics is 6.03 times less risky than New Horizon. It trades about -0.39 of its potential returns per unit of risk. New Horizon Aircraft is currently generating about -0.11 per unit of risk. If you would invest 400.00 in CanSino Biologics on November 3, 2024 and sell it today you would lose (63.00) from holding CanSino Biologics or give up 15.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
CanSino Biologics vs. New Horizon Aircraft
Performance |
| Timeline |
| CanSino Biologics |
| New Horizon Aircraft |
CanSino Biologics and New Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and New Horizon
The main advantage of trading using opposite CanSino Biologics and New Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, New Horizon 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 New Horizon will offset losses from the drop in New Horizon's long position.| CanSino Biologics vs. Canopy Growth Corp | CanSino Biologics vs. Aurora Cannabis | CanSino Biologics vs. SNDL Inc | CanSino Biologics vs. Cronos Group |
| New Horizon vs. WEC Energy Group | New Horizon vs. Boyd Gaming | New Horizon vs. NRG Energy | New Horizon vs. Western Midstream Partners |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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