Correlation Between Cansino Biologics and BankUnited

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

Diversification Opportunities for Cansino Biologics and BankUnited

-0.35
  Correlation Coefficient

Very good diversification

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

Pair Corralation between Cansino Biologics and BankUnited

Assuming the 90 days horizon Cansino Biologics is expected to under-perform the BankUnited. In addition to that, Cansino Biologics is 2.02 times more volatile than BankUnited. It trades about -0.07 of its total potential returns per unit of risk. BankUnited is currently generating about 0.26 per unit of volatility. If you would invest  3,455  in BankUnited on May 17, 2022 and sell it today you would earn a total of  627.00  from holding BankUnited or generate 18.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Cansino Biologics  vs.  BankUnited

 Performance (%) 
       Timeline  
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 rather sound fundamental drivers, Cansino Biologics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Cansino Price Channel

BankUnited 
BankUnited Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in BankUnited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward-looking signals, BankUnited is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

BankUnited Price Channel

Cansino Biologics and BankUnited Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cansino Biologics and BankUnited

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

Cansino Biologics

Pair trading matchups for Cansino Biologics

The idea behind Cansino Biologics and BankUnited 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.
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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