Correlation Between CanSino Biologics and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and BANK HANDLOWY 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 BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and BANK HANDLOWY, you can compare the effects of market volatilities on CanSino Biologics and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and BANK HANDLOWY.
Diversification Opportunities for CanSino Biologics and BANK HANDLOWY
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CanSino and BANK is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between CanSino Biologics and BANK HANDLOWY
Assuming the 90 days trading horizon CanSino Biologics is expected to generate 11.22 times more return on investment than BANK HANDLOWY. However, CanSino Biologics is 11.22 times more volatile than BANK HANDLOWY. It trades about 0.05 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about -0.36 per unit of risk. If you would invest 326.00 in CanSino Biologics on September 3, 2024 and sell it today you would earn a total of 10.00 from holding CanSino Biologics or generate 3.07% 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. BANK HANDLOWY
Performance |
| Timeline |
| CanSino Biologics |
| BANK HANDLOWY |
CanSino Biologics and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and BANK HANDLOWY
The main advantage of trading using opposite CanSino Biologics and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| CanSino Biologics vs. Merck KGaA | CanSino Biologics vs. Superior Plus Corp | CanSino Biologics vs. NMI Holdings | CanSino Biologics vs. Origin Agritech |
| BANK HANDLOWY vs. INFORMATION SVC GRP | BANK HANDLOWY vs. RELIANCE STEEL AL | BANK HANDLOWY vs. Mitsui Chemicals | BANK HANDLOWY vs. GFL ENVIRONM |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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