Correlation Between Xinhua Winshare and CanSino Biologics

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Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare 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 Xinhua Winshare and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and CanSino Biologics, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and CanSino Biologics.

Diversification Opportunities for Xinhua Winshare and CanSino Biologics

XinhuaCanSinoDiversified AwayXinhuaCanSinoDiversified Away100%
0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Xinhua and CanSino is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and CanSino Biologics go up and down completely randomly.

Pair Corralation between Xinhua Winshare and CanSino Biologics

Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the CanSino Biologics. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 1.65 times less risky than CanSino Biologics. The stock trades about -0.1 of its potential returns per unit of risk. The CanSino Biologics is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  350.00  in CanSino Biologics on November 20, 2024 and sell it today you would earn a total of  58.00  from holding CanSino Biologics or generate 16.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Xinhua Winshare Publishing  vs.  CanSino Biologics

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-5051015
JavaScript chart by amCharts 3.21.15SXV CJH
       Timeline  
Xinhua Winshare Publ 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Xinhua Winshare Publishing are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Xinhua Winshare reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.151.21.251.31.351.41.45
CanSino Biologics 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CanSino Biologics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CanSino Biologics unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3.33.43.53.63.73.83.94

Xinhua Winshare and CanSino Biologics Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.19-4.64-3.08-1.530.01.583.214.856.488.12 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15SXV CJH
       Returns  

Pair Trading with Xinhua Winshare and CanSino Biologics

The main advantage of trading using opposite Xinhua Winshare and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.
The idea behind Xinhua Winshare Publishing and CanSino Biologics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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