Correlation Between Sixt Leasing and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and CanSino Biologics, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and CanSino Biologics.
Diversification Opportunities for Sixt Leasing and CanSino Biologics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sixt and CanSino is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and CanSino Biologics go up and down completely randomly.
Pair Corralation between Sixt Leasing and CanSino Biologics
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 0.42 times more return on investment than CanSino Biologics. However, Sixt Leasing SE is 2.36 times less risky than CanSino Biologics. It trades about -0.02 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.02 per unit of risk. If you would invest 1,142 in Sixt Leasing SE on November 7, 2024 and sell it today you would lose (242.00) from holding Sixt Leasing SE or give up 21.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. CanSino Biologics
Performance |
| Timeline |
| Sixt Leasing SE |
| CanSino Biologics |
Sixt Leasing and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and CanSino Biologics
The main advantage of trading using opposite Sixt Leasing and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. Gaming and Leisure | Sixt Leasing vs. Westinghouse Air Brake | Sixt Leasing vs. Ryanair Holdings plc | Sixt Leasing vs. NORWEGIAN AIR SHUT |
| CanSino Biologics vs. Boyd Gaming | CanSino Biologics vs. QINGCI GAMES INC | CanSino Biologics vs. TROPHY GAMES DEV | CanSino Biologics vs. ANTA SPORTS PRODUCT |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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