Correlation Between CanSino Biologics and Strategic Education
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and Strategic Education 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 Strategic Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and Strategic Education, you can compare the effects of market volatilities on CanSino Biologics and Strategic Education 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 Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Strategic Education.
Diversification Opportunities for CanSino Biologics and Strategic Education
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CanSino and Strategic is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education 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 Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Strategic Education go up and down completely randomly.
Pair Corralation between CanSino Biologics and Strategic Education
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the Strategic Education. In addition to that, CanSino Biologics is 2.81 times more volatile than Strategic Education. It trades about -0.16 of its total potential returns per unit of risk. Strategic Education is currently generating about 0.16 per unit of volatility. If you would invest 8,950 in Strategic Education on November 1, 2024 and sell it today you would earn a total of 300.00 from holding Strategic Education or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. Strategic Education
Performance |
| Timeline |
| CanSino Biologics |
| Strategic Education |
CanSino Biologics and Strategic Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and Strategic Education
The main advantage of trading using opposite CanSino Biologics and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, Strategic Education 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 Strategic Education will offset losses from the drop in Strategic Education's long position.| CanSino Biologics vs. APPLIED MATERIALS | CanSino Biologics vs. COMPUTERSHARE | CanSino Biologics vs. Mitsubishi Materials | CanSino Biologics vs. VULCAN MATERIALS |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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