Correlation Between CanSino Biologics and Tsumura

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

By analyzing existing cross correlation between CanSino Biologics and Tsumura Co, you can compare the effects of market volatilities on CanSino Biologics and Tsumura 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 Tsumura. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and Tsumura.

Diversification Opportunities for CanSino Biologics and Tsumura

0.0

Correlation Coefficient

CanSino Biologics  Tsumura

Pay attention - limited upside

The 3 months correlation between CanSino and Tsumura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and Tsumura Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsumura 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 Tsumura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsumura has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and Tsumura go up and down completely randomly.

Pair Corralation between CanSino Biologics and Tsumura

If you would invest  2,360  in Tsumura Co on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Tsumura Co or generate 0.0% return on investment over 90 days.

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

CanSino Biologics  vs.  Tsumura Co

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. Despite nearly fragile basic indicators, CanSino Biologics reported solid returns over the last few months and may actually be approaching a breakup point.

Tsumura

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tsumura Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tsumura is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CanSino Biologics and Tsumura

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

The idea behind CanSino Biologics and Tsumura Co 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.