Correlation Between CanSino Biologics and Rio Tinto
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and Rio Tinto 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 Rio Tinto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and Rio Tinto Group, you can compare the effects of market volatilities on CanSino Biologics and Rio Tinto 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 Rio Tinto. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Rio Tinto.
Diversification Opportunities for CanSino Biologics and Rio Tinto
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CanSino and Rio is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Rio Tinto Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rio Tinto Group 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 Rio Tinto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rio Tinto Group has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Rio Tinto go up and down completely randomly.
Pair Corralation between CanSino Biologics and Rio Tinto
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the Rio Tinto. In addition to that, CanSino Biologics is 1.87 times more volatile than Rio Tinto Group. It trades about -0.18 of its total potential returns per unit of risk. Rio Tinto Group is currently generating about 0.13 per unit of volatility. If you would invest 5,636 in Rio Tinto Group on November 5, 2024 and sell it today you would earn a total of 227.00 from holding Rio Tinto Group or generate 4.03% 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. Rio Tinto Group
Performance |
| Timeline |
| CanSino Biologics |
| Rio Tinto Group |
CanSino Biologics and Rio Tinto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and Rio Tinto
The main advantage of trading using opposite CanSino Biologics and Rio Tinto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, Rio Tinto 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 Rio Tinto will offset losses from the drop in Rio Tinto's long position.| CanSino Biologics vs. Delta Air Lines | CanSino Biologics vs. Pentair plc | CanSino Biologics vs. DETALION GAMES SA | CanSino Biologics vs. Scientific Games |
| Rio Tinto vs. ECHO INVESTMENT ZY | Rio Tinto vs. Flutter Entertainment PLC | Rio Tinto vs. Melco Resorts Entertainment | Rio Tinto vs. Tencent Music Entertainment |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |