Correlation Between CanSino Biologics and China Mobile
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and China Mobile 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 China Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and China Mobile Limited, you can compare the effects of market volatilities on CanSino Biologics and China Mobile 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 China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and China Mobile.
Diversification Opportunities for CanSino Biologics and China Mobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CanSino and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited 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 China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and China Mobile go up and down completely randomly.
Pair Corralation between CanSino Biologics and China Mobile
If you would invest 350.00 in CanSino Biologics on November 8, 2024 and sell it today you would earn a total of 4.00 from holding CanSino Biologics or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CanSino Biologics vs. China Mobile Limited
Performance |
| Timeline |
| CanSino Biologics |
| China Mobile Limited |
CanSino Biologics and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and China Mobile
The main advantage of trading using opposite CanSino Biologics and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile'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 |
| China Mobile vs. DISTRICT METALS | China Mobile vs. Calibre Mining Corp | China Mobile vs. Nippon Light Metal | China Mobile vs. Harmony Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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