Correlation Between CanSino Biologics and Linedata Services
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and Linedata Services 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 Linedata Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and Linedata Services SA, you can compare the effects of market volatilities on CanSino Biologics and Linedata Services 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 Linedata Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Linedata Services.
Diversification Opportunities for CanSino Biologics and Linedata Services
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CanSino and Linedata is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Linedata Services SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linedata Services 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 Linedata Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linedata Services has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Linedata Services go up and down completely randomly.
Pair Corralation between CanSino Biologics and Linedata Services
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the Linedata Services. In addition to that, CanSino Biologics is 2.47 times more volatile than Linedata Services SA. It trades about -0.19 of its total potential returns per unit of risk. Linedata Services SA is currently generating about 0.17 per unit of volatility. If you would invest 8,040 in Linedata Services SA on October 17, 2024 and sell it today you would earn a total of 340.00 from holding Linedata Services SA or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. Linedata Services SA
Performance |
| Timeline |
| CanSino Biologics |
| Linedata Services |
CanSino Biologics and Linedata Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and Linedata Services
The main advantage of trading using opposite CanSino Biologics and Linedata Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, Linedata Services 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 Linedata Services will offset losses from the drop in Linedata Services' long position.| CanSino Biologics vs. ASURE SOFTWARE | CanSino Biologics vs. Diamyd Medical AB | CanSino Biologics vs. CompuGroup Medical SE | CanSino Biologics vs. SPECTRAL MEDICAL |
| Linedata Services vs. SCANSOURCE | Linedata Services vs. BioNTech SE | Linedata Services vs. CanSino Biologics | Linedata Services vs. GLG LIFE TECH |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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