Correlation Between Shandong Longquan and Maccura Biotechnology
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Maccura Biotechnology Co, you can compare the effects of market volatilities on Shandong Longquan and Maccura Biotechnology 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 Shandong Longquan with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Maccura Biotechnology.
Diversification Opportunities for Shandong Longquan and Maccura Biotechnology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Maccura is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Shandong Longquan 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 Shandong Longquan Pipeline are associated (or correlated) with Maccura Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maccura Biotechnology has no effect on the direction of Shandong Longquan i.e., Shandong Longquan and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Shandong Longquan and Maccura Biotechnology
Assuming the 90 days trading horizon Shandong Longquan Pipeline is expected to generate 1.16 times more return on investment than Maccura Biotechnology. However, Shandong Longquan is 1.16 times more volatile than Maccura Biotechnology Co. It trades about 0.0 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.08 per unit of risk. If you would invest 507.00 in Shandong Longquan Pipeline on September 12, 2024 and sell it today you would lose (2.00) from holding Shandong Longquan Pipeline or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Shandong Longquan |
| Maccura Biotechnology |
Shandong Longquan and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Maccura Biotechnology
The main advantage of trading using opposite Shandong Longquan and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan position performs unexpectedly, Maccura Biotechnology 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 Maccura Biotechnology will offset losses from the drop in Maccura Biotechnology's long position.| Shandong Longquan vs. Zijin Mining Group | Shandong Longquan vs. Wanhua Chemical Group | Shandong Longquan vs. Baoshan Iron Steel | Shandong Longquan vs. Rongsheng Petrochemical Co |
| Maccura Biotechnology vs. Cultural Investment Holdings | Maccura Biotechnology vs. Gome Telecom Equipment | Maccura Biotechnology vs. Holitech Technology Co | Maccura Biotechnology vs. Zotye Automobile Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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