Correlation Between Stratasys and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and CanSino Biologics, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and CanSino Biologics.
Diversification Opportunities for Stratasys and CanSino Biologics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stratasys and CanSino is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Stratasys 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 Stratasys 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 Stratasys i.e., Stratasys and CanSino Biologics go up and down completely randomly.
Pair Corralation between Stratasys and CanSino Biologics
Given the investment horizon of 90 days Stratasys is expected to generate 0.8 times more return on investment than CanSino Biologics. However, Stratasys is 1.25 times less risky than CanSino Biologics. It trades about 0.01 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.02 per unit of risk. If you would invest 1,392 in Stratasys on November 7, 2024 and sell it today you would lose (147.00) from holding Stratasys or give up 10.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. CanSino Biologics
Performance |
| Timeline |
| Stratasys |
| CanSino Biologics |
Stratasys and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and CanSino Biologics
The main advantage of trading using opposite Stratasys and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| CanSino Biologics vs. Canopy Growth Corp | CanSino Biologics vs. Aurora Cannabis | CanSino Biologics vs. SNDL Inc | CanSino Biologics vs. Cronos Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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