Correlation Between CSPC PHARMACEUTGR and Biogen
Can any of the company-specific risk be diversified away by investing in both CSPC PHARMACEUTGR and Biogen 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 CSPC PHARMACEUTGR and Biogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSPC PHARMACEUTGR ADR4 and Biogen Inc, you can compare the effects of market volatilities on CSPC PHARMACEUTGR and Biogen 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 CSPC PHARMACEUTGR with a short position of Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSPC PHARMACEUTGR and Biogen.
Diversification Opportunities for CSPC PHARMACEUTGR and Biogen
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSPC and Biogen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CSPC PHARMACEUTGR ADR4 and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc and CSPC PHARMACEUTGR 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 CSPC PHARMACEUTGR ADR4 are associated (or correlated) with Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of CSPC PHARMACEUTGR i.e., CSPC PHARMACEUTGR and Biogen go up and down completely randomly.
Pair Corralation between CSPC PHARMACEUTGR and Biogen
Assuming the 90 days trading horizon CSPC PHARMACEUTGR ADR4 is expected to generate 2.58 times more return on investment than Biogen. However, CSPC PHARMACEUTGR is 2.58 times more volatile than Biogen Inc. It trades about 0.15 of its potential returns per unit of risk. Biogen Inc is currently generating about 0.04 per unit of risk. If you would invest 251.00 in CSPC PHARMACEUTGR ADR4 on April 24, 2025 and sell it today you would earn a total of 121.00 from holding CSPC PHARMACEUTGR ADR4 or generate 48.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
CSPC PHARMACEUTGR ADR4 vs. Biogen Inc
Performance |
Timeline |
CSPC PHARMACEUTGR ADR4 |
Biogen Inc |
CSPC PHARMACEUTGR and Biogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSPC PHARMACEUTGR and Biogen
The main advantage of trading using opposite CSPC PHARMACEUTGR and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSPC PHARMACEUTGR position performs unexpectedly, Biogen 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 Biogen will offset losses from the drop in Biogen's long position.CSPC PHARMACEUTGR vs. Johnson Johnson | CSPC PHARMACEUTGR vs. Roche Holding Ltd | CSPC PHARMACEUTGR vs. Amgen Inc | CSPC PHARMACEUTGR vs. Bayer AG NA |
Biogen vs. North American Construction | Biogen vs. Monument Mining Limited | Biogen vs. Penta Ocean Construction Co | Biogen vs. Dairy Farm International |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Stocks Directory Find actively traded stocks across global markets | |
Transaction History View history of all your transactions and understand their impact on performance |