Correlation Between CompoSecure and CanSino Biologics

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

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

Diversification Opportunities for CompoSecure and CanSino Biologics

0.25

Correlation Coefficient

CompoSecure  CanSino Biologics

Modest diversification

The 3 months correlation between CompoSecure and CanSino is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CompoSecure and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics and CompoSecure 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 CompoSecure 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 CompoSecure i.e., CompoSecure and CanSino Biologics go up and down completely randomly.

Pair Corralation between CompoSecure and CanSino Biologics

Assuming the 90 days horizon CompoSecure is expected to generate 0.58 times more return on investment than CanSino Biologics. However, CompoSecure is 1.71 times less risky than CanSino Biologics. It trades about 0.37 of its potential returns per unit of risk. CanSino Biologics is currently generating about 0.13 per unit of risk. If you would invest  344.00  in CompoSecure on April 20, 2025 and sell it today you would earn a total of  357.00  from holding CompoSecure or generate 103.78% return on investment over 90 days.

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

CompoSecure  vs.  CanSino Biologics

CompoSecure

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

CanSino Biologics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CanSino Biologics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, CanSino Biologics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CompoSecure and CanSino Biologics

The main advantage of trading using opposite CompoSecure and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompoSecure 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 CompoSecure 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.