Correlation Between Cal Maine and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both Cal Maine and CanSino Biologics 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 Cal Maine and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Maine Foods and CanSino Biologics, you can compare the effects of market volatilities on Cal Maine and CanSino Biologics 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 Cal Maine with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Maine and CanSino Biologics.
Diversification Opportunities for Cal Maine and CanSino Biologics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cal and CanSino is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Cal Maine 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 Cal Maine Foods are associated (or correlated) with CanSino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanSino Biologics has no effect on the direction of Cal Maine i.e., Cal Maine and CanSino Biologics go up and down completely randomly.
Pair Corralation between Cal Maine and CanSino Biologics
Assuming the 90 days trading horizon Cal Maine Foods is expected to generate 1.09 times more return on investment than CanSino Biologics. However, Cal Maine is 1.09 times more volatile than CanSino Biologics. It trades about 0.06 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.15 per unit of risk. If you would invest 10,027 in Cal Maine Foods on November 3, 2024 and sell it today you would earn a total of 298.00 from holding Cal Maine Foods or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cal Maine Foods vs. CanSino Biologics
Performance |
| Timeline |
| Cal Maine Foods |
| CanSino Biologics |
Cal Maine and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal Maine and CanSino Biologics
The main advantage of trading using opposite Cal Maine and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Maine position performs unexpectedly, CanSino Biologics 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 CanSino Biologics will offset losses from the drop in CanSino Biologics' long position.| Cal Maine vs. VITEC SOFTWARE GROUP | Cal Maine vs. Guidewire Software | Cal Maine vs. Check Point Software | Cal Maine vs. USU Software AG |
| CanSino Biologics vs. ASURE SOFTWARE | CanSino Biologics vs. CLOVER HEALTH INV | CanSino Biologics vs. Urban Outfitters | CanSino Biologics vs. RCI Hospitality Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |