Correlation Between Siamgas and CanSino Biologics

Can any of the company-specific risk be diversified away by investing in both Siamgas 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 Siamgas and CanSino Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siamgas And Petrochemicals and CanSino Biologics, you can compare the effects of market volatilities on Siamgas 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 Siamgas with a short position of CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and CanSino Biologics.

Diversification Opportunities for Siamgas and CanSino Biologics

0.08

Correlation Coefficient

Siamgas  CanSino Biologics

Significant diversification

The 3 months correlation between Siamgas and CanSino is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and Siamgas 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 Siamgas And Petrochemicals 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 Siamgas i.e., Siamgas and CanSino Biologics go up and down completely randomly.

Pair Corralation between Siamgas and CanSino Biologics

Assuming the 90 days trading horizon Siamgas is expected to generate 1.33 times less return on investment than CanSino Biologics. In addition to that, Siamgas is 1.58 times more volatile than CanSino Biologics. It trades about 0.03 of its total potential returns per unit of risk. CanSino Biologics is currently generating about 0.07 per unit of volatility. If you would invest  201.00  in CanSino Biologics on October 24, 2024 and sell it today you would earn a total of  143.00  from holding CanSino Biologics or generate 71.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Siamgas And Petrochemicals  vs.  CanSino Biologics

Siamgas And Petroche

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Siamgas And Petrochemicals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Siamgas is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

CanSino Biologics

Risk-Adjusted Performance

5 of 100

Modest

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 uncertain basic indicators, CanSino Biologics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siamgas and CanSino Biologics

The main advantage of trading using opposite Siamgas and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas 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 Siamgas And Petrochemicals 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.