Correlation Between CanSino Biologics and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and ADRIATIC METALS 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 ADRIATIC METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on CanSino Biologics and ADRIATIC METALS 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 ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and ADRIATIC METALS.
Diversification Opportunities for CanSino Biologics and ADRIATIC METALS
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CanSino and ADRIATIC is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS 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 ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between CanSino Biologics and ADRIATIC METALS
Assuming the 90 days trading horizon CanSino Biologics is expected to generate 1.16 times more return on investment than ADRIATIC METALS. However, CanSino Biologics is 1.16 times more volatile than ADRIATIC METALS LS 013355. It trades about 0.08 of its potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.04 per unit of risk. If you would invest 190.00 in CanSino Biologics on November 8, 2024 and sell it today you would earn a total of 164.00 from holding CanSino Biologics or generate 86.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| CanSino Biologics |
| ADRIATIC METALS LS |
CanSino Biologics and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and ADRIATIC METALS
The main advantage of trading using opposite CanSino Biologics and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| CanSino Biologics vs. Easy Software AG | CanSino Biologics vs. Allegheny Technologies Incorporated | CanSino Biologics vs. Bio Techne Corp | CanSino Biologics vs. CORNISH METALS INC |
| ADRIATIC METALS vs. Xenia Hotels Resorts | ADRIATIC METALS vs. BAKED GAMES SA | ADRIATIC METALS vs. Sunstone Hotel Investors | ADRIATIC METALS vs. International Game Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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