Correlation Between CanSino Biologics and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and Grand Canyon 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 Grand Canyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and Grand Canyon Education, you can compare the effects of market volatilities on CanSino Biologics and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Grand Canyon.
Diversification Opportunities for CanSino Biologics and Grand Canyon
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between CanSino and Grand is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Grand Canyon go up and down completely randomly.
Pair Corralation between CanSino Biologics and Grand Canyon
Assuming the 90 days trading horizon CanSino Biologics is expected to generate 2.31 times more return on investment than Grand Canyon. However, CanSino Biologics is 2.31 times more volatile than Grand Canyon Education. It trades about 0.08 of its potential returns per unit of risk. Grand Canyon Education is currently generating about 0.08 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. Grand Canyon Education
Performance |
| Timeline |
| CanSino Biologics |
| Grand Canyon Education |
CanSino Biologics and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and Grand Canyon
The main advantage of trading using opposite CanSino Biologics and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon'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 |
| Grand Canyon vs. PLAYTIKA HOLDING DL 01 | Grand Canyon vs. Columbia Sportswear | Grand Canyon vs. Aristocrat Leisure Limited | Grand Canyon vs. Playa Hotels Resorts |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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