Correlation Between CanSino Biologics and Deutsche Pfandbriefbank
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and Deutsche Pfandbriefbank AG, you can compare the effects of market volatilities on CanSino Biologics and Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Deutsche Pfandbriefbank.
Diversification Opportunities for CanSino Biologics and Deutsche Pfandbriefbank
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CanSino and Deutsche is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Deutsche Pfandbriefbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Pfandbriefbank has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Deutsche Pfandbriefbank go up and down completely randomly.
Pair Corralation between CanSino Biologics and Deutsche Pfandbriefbank
Assuming the 90 days trading horizon CanSino Biologics is expected to generate 1.96 times more return on investment than Deutsche Pfandbriefbank. However, CanSino Biologics is 1.96 times more volatile than Deutsche Pfandbriefbank AG. It trades about 0.13 of its potential returns per unit of risk. Deutsche Pfandbriefbank AG is currently generating about 0.05 per unit of risk. If you would invest 206.00 in CanSino Biologics on November 2, 2024 and sell it today you would earn a total of 136.00 from holding CanSino Biologics or generate 66.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.04% |
Values | Daily Returns |
CanSino Biologics vs. Deutsche Pfandbriefbank AG
Performance |
Timeline |
CanSino Biologics |
Deutsche Pfandbriefbank |
CanSino Biologics and Deutsche Pfandbriefbank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CanSino Biologics and Deutsche Pfandbriefbank
The main advantage of trading using opposite CanSino Biologics and Deutsche Pfandbriefbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank will offset losses from the drop in Deutsche Pfandbriefbank's long position.CanSino Biologics vs. Automatic Data Processing | CanSino Biologics vs. KENEDIX OFFICE INV | CanSino Biologics vs. Pure Storage | CanSino Biologics vs. MICRONIC MYDATA |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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