Correlation Between NBCUNIVERSAL and CanSino Biologics

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

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

Diversification Opportunities for NBCUNIVERSAL and CanSino Biologics

0.0

Correlation Coefficient

NBCUNIVERSAL  CanSino Biologics

Pay attention - limited upside

The 3 months correlation between NBCUNIVERSAL and CanSino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NBCUNIVERSAL MEDIA LLC and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and NBCUNIVERSAL 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 NBCUNIVERSAL MEDIA LLC 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 NBCUNIVERSAL i.e., NBCUNIVERSAL and CanSino Biologics go up and down completely randomly.

Pair Corralation between NBCUNIVERSAL and CanSino Biologics

If you would invest  400.00  in CanSino Biologics on December 28, 2024 and sell it today you would lose (16.00) from holding CanSino Biologics or give up 4.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

NBCUNIVERSAL MEDIA LLC  vs.  CanSino Biologics

NBCUNIVERSAL MEDIA LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days NBCUNIVERSAL MEDIA LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NBCUNIVERSAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CanSino Biologics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CanSino Biologics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, CanSino Biologics may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with NBCUNIVERSAL and CanSino Biologics

The main advantage of trading using opposite NBCUNIVERSAL and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBCUNIVERSAL 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 NBCUNIVERSAL MEDIA LLC 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.