Correlation Between CanSino Biologics and THARISA NON
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and THARISA NON 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 THARISA NON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and THARISA NON LIST, you can compare the effects of market volatilities on CanSino Biologics and THARISA NON 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 THARISA NON. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and THARISA NON.
Diversification Opportunities for CanSino Biologics and THARISA NON
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CanSino and THARISA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and THARISA NON LIST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THARISA NON LIST 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 THARISA NON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THARISA NON LIST has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and THARISA NON go up and down completely randomly.
Pair Corralation between CanSino Biologics and THARISA NON
Assuming the 90 days trading horizon CanSino Biologics is expected to generate 0.91 times more return on investment than THARISA NON. However, CanSino Biologics is 1.09 times less risky than THARISA NON. It trades about -0.19 of its potential returns per unit of risk. THARISA NON LIST is currently generating about -0.2 per unit of risk. If you would invest 384.00 in CanSino Biologics on November 6, 2024 and sell it today you would lose (44.00) from holding CanSino Biologics or give up 11.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. THARISA NON LIST
Performance |
| Timeline |
| CanSino Biologics |
| THARISA NON LIST |
CanSino Biologics and THARISA NON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and THARISA NON
The main advantage of trading using opposite CanSino Biologics and THARISA NON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, THARISA NON 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 THARISA NON will offset losses from the drop in THARISA NON's long position.| CanSino Biologics vs. Boyd Gaming | CanSino Biologics vs. QINGCI GAMES INC | CanSino Biologics vs. TROPHY GAMES DEV | CanSino Biologics vs. ANTA SPORTS PRODUCT |
| THARISA NON vs. CODERE ONLINE LUX | THARISA NON vs. CARSALESCOM | THARISA NON vs. SALESFORCE INC CDR | THARISA NON vs. Lamar Advertising |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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