Correlation Between CONTAGIOUS GAMING and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both CONTAGIOUS GAMING 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 CONTAGIOUS GAMING and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONTAGIOUS GAMING INC and CanSino Biologics, you can compare the effects of market volatilities on CONTAGIOUS GAMING 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 CONTAGIOUS GAMING with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONTAGIOUS GAMING and CanSino Biologics.
Diversification Opportunities for CONTAGIOUS GAMING and CanSino Biologics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONTAGIOUS and CanSino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONTAGIOUS GAMING INC and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and CONTAGIOUS GAMING 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 CONTAGIOUS GAMING INC 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 CONTAGIOUS GAMING i.e., CONTAGIOUS GAMING and CanSino Biologics go up and down completely randomly.
Pair Corralation between CONTAGIOUS GAMING and CanSino Biologics
Assuming the 90 days trading horizon CONTAGIOUS GAMING INC is expected to generate 32.36 times more return on investment than CanSino Biologics. However, CONTAGIOUS GAMING is 32.36 times more volatile than CanSino Biologics. It trades about 0.2 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.03 per unit of risk. If you would invest 0.35 in CONTAGIOUS GAMING INC on October 16, 2024 and sell it today you would lose (0.05) from holding CONTAGIOUS GAMING INC or give up 14.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
CONTAGIOUS GAMING INC vs. CanSino Biologics
Performance |
Timeline |
CONTAGIOUS GAMING INC |
CanSino Biologics |
CONTAGIOUS GAMING and CanSino Biologics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CONTAGIOUS GAMING and CanSino Biologics
The main advantage of trading using opposite CONTAGIOUS GAMING and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONTAGIOUS GAMING 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.CONTAGIOUS GAMING vs. Sea Limited | CONTAGIOUS GAMING vs. Electronic Arts | CONTAGIOUS GAMING vs. NEXON Co | CONTAGIOUS GAMING vs. NEXON Co |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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