Correlation Between Elixinol Global and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both Elixinol Global 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 Elixinol Global and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and CanSino Biologics, you can compare the effects of market volatilities on Elixinol Global 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 Elixinol Global with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and CanSino Biologics.
Diversification Opportunities for Elixinol Global and CanSino Biologics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elixinol and CanSino is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Elixinol Global 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 Elixinol Global 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 Elixinol Global i.e., Elixinol Global and CanSino Biologics go up and down completely randomly.
Pair Corralation between Elixinol Global and CanSino Biologics
Assuming the 90 days horizon Elixinol Global is expected to generate 51.78 times more return on investment than CanSino Biologics. However, Elixinol Global is 51.78 times more volatile than CanSino Biologics. It trades about 0.28 of its potential returns per unit of risk. CanSino Biologics is currently generating about 0.15 per unit of risk. If you would invest 0.22 in Elixinol Global on September 13, 2024 and sell it today you would earn a total of 0.28 from holding Elixinol Global or generate 127.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elixinol Global vs. CanSino Biologics
Performance |
| Timeline |
| Elixinol Global |
| CanSino Biologics |
Elixinol Global and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and CanSino Biologics
The main advantage of trading using opposite Elixinol Global and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global 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.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| CanSino Biologics vs. 4Front Ventures Corp | CanSino Biologics vs. Khiron Life Sciences | CanSino Biologics vs. BellRock Brands | CanSino Biologics vs. Elixinol Global |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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