Correlation Between CanSino Biologics and Performance Food
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and Performance Food 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 Performance Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and Performance Food Group, you can compare the effects of market volatilities on CanSino Biologics and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Performance Food.
Diversification Opportunities for CanSino Biologics and Performance Food
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CanSino and Performance is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Performance Food go up and down completely randomly.
Pair Corralation between CanSino Biologics and Performance Food
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the Performance Food. In addition to that, CanSino Biologics is 3.25 times more volatile than Performance Food Group. It trades about -0.15 of its total potential returns per unit of risk. Performance Food Group is currently generating about 0.34 per unit of volatility. If you would invest 8,100 in Performance Food Group on November 3, 2024 and sell it today you would earn a total of 550.00 from holding Performance Food Group or generate 6.79% 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. Performance Food Group
Performance |
| Timeline |
| CanSino Biologics |
| Performance Food |
CanSino Biologics and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and Performance Food
The main advantage of trading using opposite CanSino Biologics and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| CanSino Biologics vs. ASURE SOFTWARE | CanSino Biologics vs. CLOVER HEALTH INV | CanSino Biologics vs. Urban Outfitters | CanSino Biologics vs. RCI Hospitality Holdings |
| Performance Food vs. BioNTech SE | Performance Food vs. GLG LIFE TECH | Performance Food vs. SOFI TECHNOLOGIES | Performance Food vs. CHRYSALIS INVESTMENTS LTD |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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