Correlation Between CanSino Biologics and ASPEN PHARUNADR
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and ASPEN PHARUNADR 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 ASPEN PHARUNADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and ASPEN PHARUNADR 1, you can compare the effects of market volatilities on CanSino Biologics and ASPEN PHARUNADR 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 ASPEN PHARUNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and ASPEN PHARUNADR.
Diversification Opportunities for CanSino Biologics and ASPEN PHARUNADR
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CanSino and ASPEN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and ASPEN PHARUNADR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPEN PHARUNADR 1 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 ASPEN PHARUNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPEN PHARUNADR 1 has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and ASPEN PHARUNADR go up and down completely randomly.
Pair Corralation between CanSino Biologics and ASPEN PHARUNADR
Assuming the 90 days horizon CanSino Biologics is expected to generate 2.25 times more return on investment than ASPEN PHARUNADR. However, CanSino Biologics is 2.25 times more volatile than ASPEN PHARUNADR 1. It trades about 0.07 of its potential returns per unit of risk. ASPEN PHARUNADR 1 is currently generating about -0.07 per unit of risk. If you would invest 242.00 in CanSino Biologics on September 2, 2024 and sell it today you would earn a total of 90.00 from holding CanSino Biologics or generate 37.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. ASPEN PHARUNADR 1
Performance |
| Timeline |
| CanSino Biologics |
| ASPEN PHARUNADR 1 |
CanSino Biologics and ASPEN PHARUNADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and ASPEN PHARUNADR
The main advantage of trading using opposite CanSino Biologics and ASPEN PHARUNADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, ASPEN PHARUNADR 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 ASPEN PHARUNADR will offset losses from the drop in ASPEN PHARUNADR's long position.| CanSino Biologics vs. PARKEN Sport Entertainment | CanSino Biologics vs. UNITED UTILITIES GR | CanSino Biologics vs. ANTA SPORTS PRODUCT | CanSino Biologics vs. United Utilities Group |
| ASPEN PHARUNADR vs. Broadwind | ASPEN PHARUNADR vs. Universal Insurance Holdings | ASPEN PHARUNADR vs. Selective Insurance Group | ASPEN PHARUNADR vs. Gold Road Resources |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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