Correlation Between CanSino Biologics and ANI Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and ANI Pharmaceuticals 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 ANI Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and ANI Pharmaceuticals, you can compare the effects of market volatilities on CanSino Biologics and ANI Pharmaceuticals 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 ANI Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and ANI Pharmaceuticals.
Diversification Opportunities for CanSino Biologics and ANI Pharmaceuticals
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between CanSino and ANI is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and ANI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANI Pharmaceuticals 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 ANI Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANI Pharmaceuticals has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and ANI Pharmaceuticals go up and down completely randomly.
Pair Corralation between CanSino Biologics and ANI Pharmaceuticals
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the ANI Pharmaceuticals. In addition to that, CanSino Biologics is 1.52 times more volatile than ANI Pharmaceuticals. It trades about -0.04 of its total potential returns per unit of risk. ANI Pharmaceuticals is currently generating about 0.04 per unit of volatility. If you would invest 3,760 in ANI Pharmaceuticals on September 3, 2024 and sell it today you would earn a total of 1,640 from holding ANI Pharmaceuticals or generate 43.62% 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. ANI Pharmaceuticals
Performance |
| Timeline |
| CanSino Biologics |
| ANI Pharmaceuticals |
CanSino Biologics and ANI Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and ANI Pharmaceuticals
The main advantage of trading using opposite CanSino Biologics and ANI Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, ANI Pharmaceuticals 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 ANI Pharmaceuticals will offset losses from the drop in ANI Pharmaceuticals' long position.| CanSino Biologics vs. Merck KGaA | CanSino Biologics vs. Superior Plus Corp | CanSino Biologics vs. NMI Holdings | CanSino Biologics vs. Origin Agritech |
| ANI Pharmaceuticals vs. Merck KGaA | ANI Pharmaceuticals vs. CanSino Biologics | ANI Pharmaceuticals vs. Superior Plus Corp | ANI Pharmaceuticals vs. NMI Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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