Correlation Between Cronos and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both Cronos 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 Cronos and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cronos Group and CanSino Biologics, you can compare the effects of market volatilities on Cronos 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 Cronos with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cronos and CanSino Biologics.
Diversification Opportunities for Cronos and CanSino Biologics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cronos and CanSino is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cronos Group and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Cronos 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 Cronos Group 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 Cronos i.e., Cronos and CanSino Biologics go up and down completely randomly.
Pair Corralation between Cronos and CanSino Biologics
Given the investment horizon of 90 days Cronos Group is expected to generate 0.68 times more return on investment than CanSino Biologics. However, Cronos Group is 1.47 times less risky than CanSino Biologics. It trades about -0.1 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.4 per unit of risk. If you would invest 195.00 in Cronos Group on October 30, 2024 and sell it today you would lose (6.00) from holding Cronos Group or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cronos Group vs. CanSino Biologics
Performance |
| Timeline |
| Cronos Group |
| CanSino Biologics |
Cronos and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cronos and CanSino Biologics
The main advantage of trading using opposite Cronos and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cronos 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.| Cronos vs. OrganiGram Holdings | Cronos vs. Aurora Cannabis | Cronos vs. SNDL Inc | Cronos vs. Canopy Growth Corp |
| CanSino Biologics vs. Canopy Growth Corp | CanSino Biologics vs. Aurora Cannabis | CanSino Biologics vs. SNDL Inc | CanSino Biologics vs. Cronos Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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