Correlation Between Compagnie Plastic and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic 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 Compagnie Plastic and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and CanSino Biologics, you can compare the effects of market volatilities on Compagnie Plastic 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 Compagnie Plastic with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and CanSino Biologics.
Diversification Opportunities for Compagnie Plastic and CanSino Biologics
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compagnie and CanSino is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Compagnie Plastic 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 Compagnie Plastic Omnium 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 Compagnie Plastic i.e., Compagnie Plastic and CanSino Biologics go up and down completely randomly.
Pair Corralation between Compagnie Plastic and CanSino Biologics
Assuming the 90 days horizon Compagnie Plastic Omnium is expected to generate 0.67 times more return on investment than CanSino Biologics. However, Compagnie Plastic Omnium is 1.49 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 -0.23 per unit of risk. If you would invest 996.00 in Compagnie Plastic Omnium on October 15, 2024 and sell it today you would earn a total of 28.00 from holding Compagnie Plastic Omnium or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. CanSino Biologics
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| CanSino Biologics |
Compagnie Plastic and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and CanSino Biologics
The main advantage of trading using opposite Compagnie Plastic and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic 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.| Compagnie Plastic vs. PT Astra International | Compagnie Plastic vs. Superior Plus Corp | Compagnie Plastic vs. NMI Holdings | Compagnie Plastic vs. SIVERS SEMICONDUCTORS AB |
| CanSino Biologics vs. NEWELL RUBBERMAID | CanSino Biologics vs. Martin Marietta Materials | CanSino Biologics vs. Telecom Argentina SA | CanSino Biologics vs. Compagnie Plastic Omnium |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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