Correlation Between Eurasia Mining and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both Eurasia Mining 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 Eurasia Mining and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurasia Mining Plc and CanSino Biologics, you can compare the effects of market volatilities on Eurasia Mining 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 Eurasia Mining with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurasia Mining and CanSino Biologics.
Diversification Opportunities for Eurasia Mining and CanSino Biologics
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eurasia and CanSino is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eurasia Mining Plc and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Eurasia Mining 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 Eurasia Mining Plc 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 Eurasia Mining i.e., Eurasia Mining and CanSino Biologics go up and down completely randomly.
Pair Corralation between Eurasia Mining and CanSino Biologics
Assuming the 90 days horizon Eurasia Mining is expected to generate 1.9 times less return on investment than CanSino Biologics. But when comparing it to its historical volatility, Eurasia Mining Plc is 1.52 times less risky than CanSino Biologics. It trades about 0.09 of its potential returns per unit of risk. CanSino Biologics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 206.00 in CanSino Biologics on November 3, 2024 and sell it today you would earn a total of 136.00 from holding CanSino Biologics or generate 66.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurasia Mining Plc vs. CanSino Biologics
Performance |
| Timeline |
| Eurasia Mining Plc |
| CanSino Biologics |
Eurasia Mining and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurasia Mining and CanSino Biologics
The main advantage of trading using opposite Eurasia Mining and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurasia Mining 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.| Eurasia Mining vs. Fresnillo plc | Eurasia Mining vs. Superior Plus Corp | Eurasia Mining vs. Origin Agritech | Eurasia Mining vs. Identiv |
| CanSino Biologics vs. NURAN WIRELESS INC | CanSino Biologics vs. Zurich Insurance Group | CanSino Biologics vs. CITY OFFICE REIT | CanSino Biologics vs. VIENNA INSURANCE GR |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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