Correlation Between CanSino Biologics and United Internet
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and United Internet 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 United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and United Internet AG, you can compare the effects of market volatilities on CanSino Biologics and United Internet 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 United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and United Internet.
Diversification Opportunities for CanSino Biologics and United Internet
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CanSino and United is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG 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 United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and United Internet go up and down completely randomly.
Pair Corralation between CanSino Biologics and United Internet
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the United Internet. In addition to that, CanSino Biologics is 3.11 times more volatile than United Internet AG. It trades about -0.04 of its total potential returns per unit of risk. United Internet AG is currently generating about -0.05 per unit of volatility. If you would invest 1,533 in United Internet AG on October 28, 2024 and sell it today you would lose (20.00) from holding United Internet AG or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. United Internet AG
Performance |
| Timeline |
| CanSino Biologics |
| United Internet AG |
CanSino Biologics and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and United Internet
The main advantage of trading using opposite CanSino Biologics and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| CanSino Biologics vs. Entravision Communications | CanSino Biologics vs. FUYO GENERAL LEASE | CanSino Biologics vs. Sixt Leasing SE | CanSino Biologics vs. Geely Automobile Holdings |
| United Internet vs. ELL ENVIRONHLDGS HD 0001 | United Internet vs. COSMOSTEEL HLDGS | United Internet vs. MOLSON RS BEVERAGE | United Internet vs. MAANSHAN IRON H |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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