Correlation Between CanSino Biologics and SCANSOURCE (SC3SG)
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and SCANSOURCE, you can compare the effects of market volatilities on CanSino Biologics and SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and SCANSOURCE (SC3SG).
Diversification Opportunities for CanSino Biologics and SCANSOURCE (SC3SG)
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CanSino and SCANSOURCE is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE (SC3SG) has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and SCANSOURCE (SC3SG) go up and down completely randomly.
Pair Corralation between CanSino Biologics and SCANSOURCE (SC3SG)
Assuming the 90 days trading horizon CanSino Biologics is expected to generate 0.84 times more return on investment than SCANSOURCE (SC3SG). However, CanSino Biologics is 1.19 times less risky than SCANSOURCE (SC3SG). It trades about -0.15 of its potential returns per unit of risk. SCANSOURCE is currently generating about -0.14 per unit of risk. If you would invest 380.00 in CanSino Biologics on November 3, 2024 and sell it today you would lose (38.00) from holding CanSino Biologics or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CanSino Biologics vs. SCANSOURCE
Performance |
| Timeline |
| CanSino Biologics |
| SCANSOURCE (SC3SG) |
CanSino Biologics and SCANSOURCE (SC3SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and SCANSOURCE (SC3SG)
The main advantage of trading using opposite CanSino Biologics and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG) will offset losses from the drop in SCANSOURCE (SC3SG)'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 |
| SCANSOURCE (SC3SG) vs. Apple Inc | SCANSOURCE (SC3SG) vs. Apple Inc | SCANSOURCE (SC3SG) vs. Apple Inc | SCANSOURCE (SC3SG) vs. Apple Inc |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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