Correlation Between CanSino Biologics and LOANDEPOT INC
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and LOANDEPOT INC 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 LOANDEPOT INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and LOANDEPOT INC A, you can compare the effects of market volatilities on CanSino Biologics and LOANDEPOT INC 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 LOANDEPOT INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and LOANDEPOT INC.
Diversification Opportunities for CanSino Biologics and LOANDEPOT INC
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CanSino and LOANDEPOT is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and LOANDEPOT INC A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOANDEPOT INC A 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 LOANDEPOT INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOANDEPOT INC A has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and LOANDEPOT INC go up and down completely randomly.
Pair Corralation between CanSino Biologics and LOANDEPOT INC
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the LOANDEPOT INC. But the stock apears to be less risky and, when comparing its historical volatility, CanSino Biologics is 1.52 times less risky than LOANDEPOT INC. The stock trades about -0.18 of its potential returns per unit of risk. The LOANDEPOT INC A is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 174.00 in LOANDEPOT INC A on October 29, 2024 and sell it today you would lose (8.00) from holding LOANDEPOT INC A or give up 4.6% 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. LOANDEPOT INC A
Performance |
| Timeline |
| CanSino Biologics |
| LOANDEPOT INC A |
CanSino Biologics and LOANDEPOT INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and LOANDEPOT INC
The main advantage of trading using opposite CanSino Biologics and LOANDEPOT INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, LOANDEPOT INC 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 LOANDEPOT INC will offset losses from the drop in LOANDEPOT INC's long position.| CanSino Biologics vs. Entravision Communications | CanSino Biologics vs. FUYO GENERAL LEASE | CanSino Biologics vs. Sixt Leasing SE | CanSino Biologics vs. Geely Automobile Holdings |
| LOANDEPOT INC vs. Mr Cooper Group | LOANDEPOT INC vs. PennyMac Financial Services | LOANDEPOT INC vs. OSB GROUP PLC | LOANDEPOT INC vs. FIRST NATIONAL FIN |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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