Correlation Between Cansino Biologics and HITHINK ROYALFLUSH

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

Diversification Opportunities for Cansino Biologics and HITHINK ROYALFLUSH

  Correlation Coefficient

Weak diversification

The 3 months correlation between Cansino and HITHINK is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cansino Biologics and HITHINK ROYALFLUSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITHINK ROYALFLUSH and Cansino Biologics 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 Cansino Biologics are associated (or correlated) with HITHINK ROYALFLUSH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITHINK ROYALFLUSH has no effect on the direction of Cansino Biologics i.e., Cansino Biologics and HITHINK ROYALFLUSH go up and down completely randomly.

Pair Corralation between Cansino Biologics and HITHINK ROYALFLUSH

Assuming the 90 days horizon Cansino Biologics is expected to under-perform the HITHINK ROYALFLUSH. In addition to that, Cansino Biologics is 1.35 times more volatile than HITHINK ROYALFLUSH. It trades about -0.06 of its total potential returns per unit of risk. HITHINK ROYALFLUSH is currently generating about 0.04 per unit of volatility. If you would invest  8,419  in HITHINK ROYALFLUSH on May 19, 2022 and sell it today you would earn a total of  281.00  from holding HITHINK ROYALFLUSH or generate 3.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
ValuesDaily Returns

Cansino Biologics  vs.  HITHINK ROYALFLUSH

 Performance (%) 
Cansino Biologics 
Cansino Performance
0 of 100
Over the last 90 days Cansino Biologics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in September 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Cansino Price Channel

HITHINK Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in HITHINK ROYALFLUSH are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HITHINK ROYALFLUSH is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

HITHINK Price Channel

Cansino Biologics and HITHINK ROYALFLUSH Volatility Contrast

   Predicted Return Density   

Pair Trading with Cansino Biologics and HITHINK ROYALFLUSH

The main advantage of trading using opposite Cansino Biologics and HITHINK ROYALFLUSH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cansino Biologics position performs unexpectedly, HITHINK ROYALFLUSH 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 HITHINK ROYALFLUSH will offset losses from the drop in HITHINK ROYALFLUSH's long position.

Cansino Biologics

Pair trading matchups for Cansino Biologics

The idea behind Cansino Biologics and HITHINK ROYALFLUSH 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.


Pair trading matchups for HITHINK ROYALFLUSH

Bristol-Myers Squibb vs. HITHINK ROYALFLUSH
Dupont Denemours vs. HITHINK ROYALFLUSH
Sentinelone Inc vs. HITHINK ROYALFLUSH
Johnson Johnson vs. HITHINK ROYALFLUSH
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against HITHINK ROYALFLUSH as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. HITHINK ROYALFLUSH's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, HITHINK ROYALFLUSH's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to HITHINK ROYALFLUSH.
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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