Correlation Between ITALIAN WINE and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both ITALIAN WINE 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 ITALIAN WINE and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITALIAN WINE BRANDS and CanSino Biologics, you can compare the effects of market volatilities on ITALIAN WINE 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 ITALIAN WINE with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITALIAN WINE and CanSino Biologics.
Diversification Opportunities for ITALIAN WINE and CanSino Biologics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ITALIAN and CanSino is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ITALIAN WINE BRANDS and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and ITALIAN WINE 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 ITALIAN WINE BRANDS 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 ITALIAN WINE i.e., ITALIAN WINE and CanSino Biologics go up and down completely randomly.
Pair Corralation between ITALIAN WINE and CanSino Biologics
Assuming the 90 days horizon ITALIAN WINE BRANDS is expected to generate 0.39 times more return on investment than CanSino Biologics. However, ITALIAN WINE BRANDS is 2.54 times less risky than CanSino Biologics. It trades about -0.1 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.15 per unit of risk. If you would invest 2,080 in ITALIAN WINE BRANDS on September 3, 2025 and sell it today you would lose (145.00) from holding ITALIAN WINE BRANDS or give up 6.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
ITALIAN WINE BRANDS vs. CanSino Biologics
Performance |
| Timeline |
| ITALIAN WINE BRANDS |
| CanSino Biologics |
ITALIAN WINE and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITALIAN WINE and CanSino Biologics
The main advantage of trading using opposite ITALIAN WINE and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITALIAN WINE 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.| ITALIAN WINE vs. ARDAGH METAL PACDL 0001 | ITALIAN WINE vs. Stag Industrial | ITALIAN WINE vs. Motorcar Parts of | ITALIAN WINE vs. Horseshoe Metals Limited |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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