Correlation Between CanSino Biologics and Mitsubishi Chemical
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and Mitsubishi Chemical 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 Mitsubishi Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and Mitsubishi Chemical Holdings, you can compare the effects of market volatilities on CanSino Biologics and Mitsubishi Chemical 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 Mitsubishi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Mitsubishi Chemical.
Diversification Opportunities for CanSino Biologics and Mitsubishi Chemical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CanSino and Mitsubishi is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Mitsubishi Chemical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Chemical 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 Mitsubishi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Chemical has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Mitsubishi Chemical go up and down completely randomly.
Pair Corralation between CanSino Biologics and Mitsubishi Chemical
Assuming the 90 days horizon CanSino Biologics is expected to under-perform the Mitsubishi Chemical. In addition to that, CanSino Biologics is 1.42 times more volatile than Mitsubishi Chemical Holdings. It trades about -0.12 of its total potential returns per unit of risk. Mitsubishi Chemical Holdings is currently generating about 0.02 per unit of volatility. If you would invest 543.00 in Mitsubishi Chemical Holdings on September 6, 2025 and sell it today you would earn a total of 4.00 from holding Mitsubishi Chemical Holdings or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. Mitsubishi Chemical Holdings
Performance |
| Timeline |
| CanSino Biologics |
| Mitsubishi Chemical |
CanSino Biologics and Mitsubishi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and Mitsubishi Chemical
The main advantage of trading using opposite CanSino Biologics and Mitsubishi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, Mitsubishi Chemical 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 Mitsubishi Chemical will offset losses from the drop in Mitsubishi Chemical's long position.| CanSino Biologics vs. Wizz Air Holdings | CanSino Biologics vs. Salesforce | CanSino Biologics vs. BOS Better Online | CanSino Biologics vs. Delaware Investments Florida |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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